The new record surpasses the initial target of RM12b, with manufacturing as the biggest contributor, according to MB
By AFIQ AZIZ / Pic By MUHD AMIN NAHARUL
Selangor registered a record RM24.7 billion of investment in 2018, more than double the RM10.1 billion investment injection posted in 2017.
Mentri Besar (MB) Amirudin Shari said this is a new record for Selangor, surpassing the initial target of RM12 billion set last year.
The manufacturing sector was the biggest contributor with RM18.9 billion worth of investment, compared to RM5.6 billion in 2017.
“This remarkable achievement (for manufacturing) was an increase of 238% over the previous year, and this was the highest investment ever recorded,” he told a media conference on the Selangor State Investment Performance 2018 in Shah Alam yesterday.
According to Amirudin, Selangor’s foreign direct investment (FDI) increased 400% year-on-year (YoY) to RM10.84 billion from RM2.16 billion, while its domestic direct investment (DDI) increased 136% to RM8.11 billion against the RM3.43 billion recorded in the previous year.
“This performance reflects a shift in foreign investors’ sentiment, particularly after the change in government on May 9 last year.
“It also demonstrates the confidence of the international and local business communities on the transparency and efficiency of the government, as well as the effectiveness of the efforts that have been and will be implemented by the state,” Amirudin said further.
“Besides that, this performance can also be attributed to Selangor’s good logistics infrastructure, such as the ports, airports and roads connectivity, and the investment ecosystem which is in place,” he added.
Amirudin said according to the Malaysia Investment Development Authority (Mida) statistics, Selangor managed to secure 241 new manufacturing projects last year, compared to 202 approved projects in 2017.
Basic metal products dominated the manufacturing sector with RM6.9 billion worth of approved projects, followed by paper, printing and publishing (RM5.1 billion), rubber products (RM1.3 billion), food manufacturing (RM835 million) and plastic products (RM698 million).
China became the state’s major investor with RM3.9 billion of investment value last year, mainly in basic metal products and paper.
It was followed by Japan with RM435.6 million worth of investment and 27 approved projects mainly in the semiconductor, factory automation, automotive, LED products and food industries.
Amirudin also said a total of 18,475 potential employment has been created in the manufacturing sector last year, an increase of 84% compared to 10,031 jobs in 2017.
For the services sector, Selangor also surpassed the RM5 billion target with RM5.8 billion in investment, mainly from domestic players’ contribution.
In 2017, the services sector only contributed RM4.5 billion to Selangor’s economy.
“The investments in the services sector are mainly in oil and gas services, renewable energy, private healthcare, research and development activities, as well as logistics,” Amirudin said.
The state government has set a RM10 billion investment target for 2019.
“We believe we can achieve the RM10 billion target for 2019, but it will also depend on the global economic climate,” Amirudin said.
“There is also a good sign in terms of the premium payment to the state government last year, compared to the year before. So, we are on the right track.
“Invest Selangor Bhd will also closely monitor the global trends,” he said, adding that the state investment arm has identified potential investors from African countries such as Morocco.