By PRIYA VASU / Pic TMR
MALAYSIA attracted a total of RM207.9 billion of approved investments in the manufacturing, services and primary sectors in 2019, a 1.7% increase, compared to 2018.
Capital intensive projects which involve advanced technology and skilled workforce dominated the manufacturing landscape that recorded approved investments of RM82.7 billion which increased by 37% from 721 approved projects in 2018 to 988 projects in 2019.
“The manufacturing sector has the most significant multiplier effect on the nation’s activities and growth, and it will continue to be the mainstay of the economy. This includes forward and backward linkages, the development of cluster industries, the transfer of new technologies and skills development.
“In 2019, the manufacturing sector was the second-highest contributor to Malaysia’s GDP with a 22.3% share or RM316 billion,” said International Trade and Industry Minister Datuk Seri Azmin Ali.
The electrical and electronics sector tops the list with RM25.7 billion investments approved followed by paper, printing and publishing (RM10.8 billion), transport technology (RM8 billion), non-metallic mineral products (RM6.9 billion), and chemicals and chemical products (RM4.8 billion) which contributed more than 68% of the total approved investments in the manufacturing sector last year.
“It is noteworthy that investments in the three catalytic subsectors namely electrical and electronics, machinery and equipment and chemical, and two high growth areas — aerospace and medical device, recorded an increase of 90.2% from RM21.5 billion in 2018 to RM40.9 billion in 2019,” Malaysia Investment Development Authority said in a statement.
The domestic direct investment accounted for 60.4% (RM125.5 billion), while the foreign direct investment (FDI) made up for 39.6% (RM82.4 billion) of the total. The value of FDI in 2019 had increased by 2.9% from the previous year.
The services sector led the way for total investments approved in 2019. Approved investments for the sector also increased by 11.3% from 2018.
The US (RM26.8 billion), China (RM15.7 billion) and Japan (RM12.1 billion) accounted for 66.3% of total FDI approved in the manufacturing, services and primary sectors.
Selangor (RM47.8 billion) recorded the highest investments approved last year, followed by Penang (RM33.7 billion), Johor (RM24.4 billion) and Federal Territory Kuala Lumpur (KL) (RM21.6 billion). These three states including KL alone contributed more than 60% of the total approved investments for 2019.