FDIs for the period totalled RM106b with some 85.3% of the coming from Singapore, China, Austria, Japan and the Netherlands
By AUFA MARDHIAH / Pic By MUHD AMIN NAHARUL
APPROVED investments in the manufacturing, services and primary sectors rose 51.5% year-on-year (YoY) to RM177.8 million involving 3037 projects in the first nine months of 2021.
The Malaysian Investment Development Authority (Mida) stated the manufacturing sector approved investments for the period amounted to RM103.9 billion or 58.4% of the total, followed by the services sector with RM57.8 billion (32.5%) and primary sector with RM16.1 billion (9.1%).
Foreign direct investments (FDIs) for the period totalled RM106.1 billion (60%) with some 85.3% of the amount or RM90.6 billion coming from investments from Singapore, China, Austria, Japan and the Netherlands.
Domestic direct investments (DDIs) amounted to RM71.7 billion (40.3%) for the nine months.
A total of RM134.8 billion (75.8% of total) of the investments were destined for projects in Kedah, Sarawak, Kuala Lumpur, Selangor and Pahang.
By sector, the manufacturing sector investment rose 60% YoY to RM103.9 billion with 522 projects approved for the nine-month period.
FDIs in manufacturing amounted to RM91.7 billion (88.3% of total) of the approved investments while RM12.2 billion (11.7%) of the total amount came from domestic sources, Mida stated.
Mida stated that a total of 96.8% of approved investments in manufacturing sector consists of investments in the electrical and electronics (E&E) with (RM64.3 billion), fabricated metal products (RM14 billion), rubber products (RM5.4 billion), basic metal pro- ducts (RM5.2 billion), food manufacturing (RM4.6 billion), chemicals and chemical products (RM4.1 billion), scientific and measuring equipment (RM2.1 billion) and transport equipment (RM980.8 million).
Minister of International Trade and Industry Senior Minister Datuk Seri Mohamed Azmin Ali and is confident in Malaysia’s performance in providing high-skilled talents and strong readiness in advanced technology making the country an attractive investment hub.
“This, in turn, further bolsters our role as a prominent site in global companies’ manufacturing networks, enhancing Malaysia’s position as a pioneering, renowned investment destination in the region,” he was quoted in the release.
The minister added that to support the country’s Shared Prosperity Vision 2030 and 12th Malaysia Plan, the country continues to secure new investments that align well with Malaysia’s national investment aspirations and environmental, social and governance principles.
The capital investment per employee in the period rose to RM1,736,420 compared to RM1,276,071 a year ago for the same period.
The investments are forecast to require 2,923 managerial positions, 10,207 engineers in the field of E&E, mechanical, chemical and other disciplines and 7,907 skilled craftsmen positions.
Some of the notable projects approved in the January-September period for the manufacturing sector include the RM8.5 billion investment by Austria’s AT&S to set up a high-tech facility in Kulim, Kedah.
Others include Nexperia Malaysia plans to set up a facility in Negri Sembilan that could provide 700 potential job opportunities for local talent and Taiyo Yuden expansion of its multilayer ceramic capacitors production in Kuching worth some RM680 million.
The services sector projects investments totalled RM57.8 billion covering 2,473 services projects approved which are expected to create 19,731 jobs upon implementation, this includes 3,760 new knowledge-based or highly technical skilled job opportunities.
Domestic investments in the sector for the period totalled RM46.9 billion (81.1%), while foreign approved investments totalled RM10.9 billion.
The real estate sub-sector remained the largest contributor with RM20.1 billion worth of approved investments with global establishments, financial services, hotel and tourism, as well as transport services recording increases during the period.
A total of 83 projects proposing to make Malaysia their regional or global operations hubs were approved during the period of January to September 2021. These activities are expected to create 3,760 knowledge-based or highly technical skilled jobs and position Malaysia for greater integration into the global supply chain.
The primary sector attracted RM16.1 billion or 9.1% of total approved investments in January to September 2021, an 827% jump YoY.
The mining subsector dominated with approved investments of RM16 billion, followed by plantation and commodities with RM84.8 million and agriculture at RM11.5 million respectively.
Investments from domestic sources made up the bulk of the approvals at RM12.6 billion or 78.3% of the total amount with the rest coming from foreign investments (RM3.5 billion or 21.7%).
The pipeline of investment for 2022 look healthy with 523 projects proposed invest- ments worth RM37.2 billion seeking Mida approvals mainly in the manufacturing and services sectors as at Dec 10, 2021.