FDI approvals soar by 223.1% in 1H21

These investments drove manufacturing sector during the period, registering RM58b in approved investments

by HARIZAH KAMEL / Pic by MUHD AMIN NAHARUL

MALAYSIA achieved robust and impressive performance for the first half of 2021 (1H21) with proposed foreign direct investments (FDIs) soaring by 223.1% compared to 1H20, signalling a rise in con dence among foreign investors in the country’s stable and conducive economic climate and business ecosystem.

Senior Minister and International Trade and Industry Minister Datuk Seri Mohamed Azmin Ali said these augurs well with Malaysia’s path to vibrant and sustainable economic recovery.

“The stellar performance also demonstrates that Malaysia’s strategy of positioning the country as an attractive investment destination of choice and a supply chain hub in Asean, particularly for manufacturing operations, is showing positive results,” he said in a statement yesterday.

FDIs drove the strong and vibrant performance of the manufacturing sector during the period, registering RM58.2 billion in approved investments.

The remaining RM8.7 billion approved investments in this sector were from domestic sources.

In terms of total approved investments, Malaysia recorded RM107.5 billion of FDIs and domestic direct investments (DDIs) in the manufacturing, services and primary sectors, chalking up a massive jump of 69.8% compared to the same period last year.

Achieved amid a very challenging global economic landscape, the investments involved 2,110 projects and are expected to generate 44,994 job opportunities in the country.

Azmin added leveraging on the positive progress on the National Recovery Plan, improvement in the overall public health situation, and gradual reopening of economic sectors, Malaysia continues to attract high-value and high-tech investments, bolstered by its capacity and capability in providing high-skilled talents and firm readiness in adopting advanced technology for value-added industries.

“In tandem with our National Investment Aspirations (NIAs), Malaysia consistently pursues more capital-intensive projects and those that support the development agenda of the nation, consistent with environmental, social and governance goals.

“This is reflected by the increasing number of capital-intensive projects approved by the Malaysian Investment Development Authority,” he said.

Simultaneously, there is an emphasis on creating jobs across a wide spectrum of skills for the rakyat. In this regard, the 367 manufacturing projects worth

RM66.9 billion approved during 1H21, will create 32,220 job opportunities in various positions and roles, leading on the path for high-value and skilled employment.

The workforce required for the approved investments include 1,367 managerial positions and 4,031 technical professionals such as engineers in the field of electrical and electronics, mechanical, chemical and other disciplines, reflecting the higher value chain transition of the manufacturing sector.

The approved manufacturing projects will also require 4,144 skilled craftsmen. Meanwhile, domestic investments, leading in the services and primary sectors, totalled RM45 billion or 41.9% of the total approved investments.

Notable projects approved in 1H21 include Republic of Korea’s SK Nexilis Co Ltd project for a new copper foil manufacturing plant, Risen Energy’s proposed project to produce bi-facial technology solar products, and OCIM Sdn Bhd’s proposed investment to expand the capacity of its solar grade polysilicon plant.

“Going forward, from the strategic vantage point of the NIAs, we will continue to pursue high quality investments to bring value to the nation and people, not just in preserving jobs but in creating new high value-added employment,” he added.