Mida approves RM80b investments in 1H18, 67% local

By FARA AISYAH / Pic By ISMAIL CHE RUS

The government approved RM80.2 billion new direct investments for the services, manufacturing and primary sectors in the January through June 2018 period, but the bulk of the proposed businesses are from locals.

Malaysian Investment Development Authority (Mida) said the total value recorded for the period was 17.7% higher compared to the same period a year ago and involved 2,346 projects. The projects were expected to generate 60,181 jobs.

Foreign investments rose by 35.3% to RM26.5 billion in the first half of 2018 (1H18) from RM19.6 billion in the same period last year. The increase was largely in the manufacturing and primary sectors.

Domestic investments accounted for RM53.7 billion or 67% of the total approved investments. Local investments rose by 10.5% from RM48.6 billion posted a year ago.

“The foreign and local investments have risen by 35.3% and 10.5% respectively, which show people’s confidence in the country.

“With the change of government that promotes transparency and our effort in restoring the confidence of investors, I am certain that the figure will increase during the 2H18,” International Trade and Industry Minister Datuk Darell Leiking (picture) said in a statement.

The services sector continued to account for the largest share of approved investments in 1H18, contributing 63.5% or RM50.9 billion.

A total of 2,025 projects were approved, involving the creation of more than 33,970 jobs. Around 89% of these jobs will be in the distributive trade, education, MSC-status and healthcare subsectors.

But seldom, there are official figures of the total people employed after all the projects are implemented.

Healthcare services subsector recorded a huge rise of 282.5% to RM1.1 billion from RM294.7 million in 1H17. The higher investment was also contributed by the increased number of investments in the supporting services subsector.

Malaysia’s manufacturing sector recorded approved investments of RM20.2 billion, involving 287 projects in the 1H18 compared to RM16.7 billion from 299 manufacturing projects recorded in the corresponding period last year.

The approved manufacturing projects will create 25,165 job opportunities, including 530 electrical and electronics engineers, 607 mechanical engineers and 85 chemical engineers. But these are only estimates based on the proposed businesses.