The Investment, Trade and Industry Ministry (Miti) expects that approved investments will experience stronger growth in the second half of 2023 (2H2023), and are on track to meet the annual target, after achieving RM132.6bil worth of approved investments in the first half (1H2023).
“I am pleased with our achievement in 1H2023, securing RM132.6bil, which represents 60.3% of our annual target.
“This achievement closely reflects our ten-year average of RM222.6bil, highlighting our consistent efforts to attract quality investments and drive economic growth,” said International Trade and Industry Minister Tengku Datuk Seri Zafrul Abdul Aziz (pic) in a statement on Sunday (Sept 17).
During the first six months, Malaysia attracted a total of RM132.6bil (US$28.4bil) worth of approved investments in the services, manufacturing, and primary sectors, involving 2,651 projects from January to June 2023. It is anticipated to create 51,853 job opportunities in the country.
Tengku Zafrul stated that the investments displayed trust in Malaysia’s economy and offerings to investors, including a supportive government that develops pro-business policies and consistently improves the ease of doing business in the country.
The minister also emphasized that Malaysia is a reliable hub for various elements such as ecosystems, supply chains, capital and talent, flows of goods and data, and growing innovation capabilities.
Notably, Malaysia managed to attract a similar amount of approved investments in 1H2023 compared to the previous year, reflecting confidence in the nation’s economic growth prospects despite a global demand slowdown and higher interest rates in key markets.
“Direct domestic investment increased by 58% and accounted for over 52% of approved investments, which demonstrates confidence in the Madani economy policies,” he said.
The approved investments are expected to create at least 50,000 jobs for Malaysians. Tengku Zafrul said, “Our key objective is to position Malaysia as a regional hub for international companies and entrepreneurs looking to expand their presence in Asia as global supply chains shift to the continent.”
“To that end, the recently unveiled New Industrial Master Plan 2023 (NIMP2023) represents a crucial step in Malaysia’s journey toward sustainable industrial transformation and enhanced global competitiveness,” he added.
Domestic direct investment (DDI) made up 52.2% of the total approved investment, equivalent to RM69.3bil (US$14.8bil), driven by investments in the services sector, specifically real estate and the primary sector.
Tengku Zafrul also mentioned that the government is dedicated to achieving a balanced blend of foreign direct investment (FDI) and DDI, in line with Miti and the Malaysian Investment Development Authority (Mida).’s commitment.
The minister highlighted the balance demonstrated in FDI, which contributed 47.8%, or RM63.3bil (US$13.6bil), to the approved investments. The main sources of FDI were Singapore (RM13.7bil), Japan (RM9.1bil), the Netherlands (RM9bil), China (RM8.4bil), and the British Virgin Islands (RM7.1bil).
The top five states with significant approved investments were the Federal Territory of Kuala Lumpur (RM31.7bil), Selangor (RM29.7bil), Kedah (RM14.6bil), Johor (RM14.2bil), and Sabah (RM9bil). Collectively, these states accounted for an impressive 74.9% of the total approved investments.
Datuk Wira Arham Abdul Rahman, the CEO of Mida, stated that Malaysia’s strong economic fundamentals and reputation for stability, reliability, and neutrality have enabled it to attract quality investments from diverse sources.
“The long-term prospects and outlook for the digital industry remain promising. Companies across various sectors continue to invest in data, digitalization, and automation capabilities,” he said.
He also highlighted the opportunities arising from the growing digital economy in Southeast Asia, particularly in fintech, cloud computing, cybersecurity, and gaming.
“We anticipate a sustained demand for tech-related skills across all sectors in Malaysia. However, our future also depends significantly on our ability to align with global mega-trends, particularly in the context of environmental, social, and governance (ESG) practices,” he added.
He further emphasized that implementing an ESG-based business model, especially by local small and medium-sized enterprises (SMEs), has the potential to enhance competitiveness and boost Malaysia’s presence within the global value chain, driving sustainable and responsible growth for the country. – Bernama
Credit: The Star : News Feed
