Malaysia attracts RM139.3bil of approved investment in nine months

KUALA LUMPUR: Malaysia attracted a total of RM139.3 billion of investments in the manufacturing, services and primary sectors for the first nine months of 2018.

This was an 18 per cent increase from the RM118.1 billion approved in the same period last year, Malaysian Investment Development Authority (Mida) said.

The total investments approved in January-September 2018 were from 3,243 projects and are expected to generate 93,379 job opportunities for Malaysia.

Approved foreign direct investments (FDI) increased by 109.7 per cent to RM64.1 billion in January-September 2018 from RM30.5 billion in the same period last year. This was mainly driven by the manufacturing sector which recorded a strong increase of 249.4 per cent in January-September 2018.

Approved FDI in the primary sector rose 99.3 per cent.

“This indicates that investor confidence in Malaysia remains high despite the challenging global economic environment. Meanwhile, domestic investments led with RM75.2 billion, contributing 54 per cent to the total approved investments in all three sectors,” Mida said in a statement today.

Malaysia continues to be a competitive location for manufacturing projects.

Mida said a total of 468 projects worth RM59.1 billion were approved in the nine months compared with RM34.6 billion in 463 projects in the corresponding period of 2017, representing an increase of 70.5 per cent in capital investments.

Foreign investments approved in the manufacturing sector stood at RM48.8 billion, up 249.4 per cent from RM13.9 billion in the same period last year. China accounted for RM15.6 billion or 32 per cent of total foreign investments, followed by Indonesia (18.4 per cent), the Netherlands (17 per cent), the US (6.3 per cent), Korea (4.9 per cent) and Japan (4.3 per cent).

Notable investments included a new manufacturing project from Leaf Malaysia OpCo, a US-based company that will be setting up a facility in Johor to convert plant-based biomass into fermentable sugars.

"The first plant is expected to begin operations in 2021 and will create 60 job opportunities for highly skilled local workforce,” Leaf Malaysia managing director Jason Jones said in the statement.

Another quality project is an expansion by STMicroelectronics, a global semiconductor MNC which has been in Malaysia since four decades ago.

Its Malaysian plant is a key manufacturing facility for STMicroelectronics’ global assembly and test manufacturing.

Source: New Straits Times