By SHAZNI ONG / Pic By TMR
Malaysia had attracted a total investment worth RM139.3 billion in the manufacturing, services and primary sectors over the first nine months of 2018, an 18% increase from the RM118.1 billion approved in the same period last year.
The Malaysian Investment Development Authority (Mida) said approved foreign direct investments (FDIs) increased by 109.7% to RM64.1 billion between January and September this year, from RM30.5 billion in the previous corresponding period.
“This was mainly driven by the manufacturing sector, which recorded a strong increase of 249.4% in January to September 2018. Approved FDIs in the primary sector also rose by 99.3%.
“This indicates that investors’ confidence in Malaysia remains high despite the challenging global economic environment,” the agency said in a statement yesterday.
Mida added that the total investments approved were from 3,243 projects, and are expected to generate 93,379 job opportunities for the country.
Meanwhile, domestic investments led with RM75.2 billion, contributing 54% of the total approved investments in all three sectors.
Mida said the government will ensure that the country’s economy remains on a sustainable growth trajectory by providing a conducive and favourable environment to attract investors and businesses.
“Quality FDI continues to assume an important role in the development of Malaysia due to its multiplier impact on the economy.
“The strong presence of foreign investments in the manufacturing sector, in particular, has helped enlarge the market through the growth of the local supply chain ecosystem and related services industry.
“Mida continues to urge industries to leverage on growing opportunities by embracing advanced technology to enhance productivity and competitiveness,” the agency said.
According to Mida, Malaysia would continue to be a competitive location for manufacturing projects.
“A total of 468 projects worth RM59.1 billion were approved in January to September 2018 compared to RM34.6 billion in 463 projects in the corresponding period of 2017, representing an increase of 70.5% in capital investments.
“Foreign investments approved in the manufacturing sector recorded a total of RM48.8 billion, a rise of 249.4% from RM13.9 billion in the same period last year.
“China accounted for RM15.6 billion or 32% of total foreign investments, followed by Indonesia (18.4%), the Netherlands (17%), US (6.3%), South Korea (4.9%) and Japan (4.3%),” the agency said.
It said notable investments include a new manufacturing project from Leaf Malaysia OpCo, a US-based company that will be setting up a facility in Johor to convert plant-based biomass into fermentable
Another quality project is an expansion by STMicroelectronics NV, a global semiconductor multinational company which has been in Malaysia since four decades ago, Mida added.
The agency noted that under the 11th Malaysia Plan MidTerm Review, the targeted catalytic and high potential growth subsectors — namely electrical and electronics, chemicals and chemical products, machinery and equipment, medical devices and aerospace — would continue to be emphasised.
“These industries contributed 31.5% (RM18.6 billion) of the total approved investments in the manufacturing sector,” it added.