Malaysia Approves RM160 Billion in Investments for First Half of 2024

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Malaysia recorded a strong investment performance in the first half of 2024 (1H24), approving a total of RM160 billion (US$36.8 billion) in investments, representing an 18% increase compared to the same period last year, according to the Malaysian Investment Development Authority (MIDA). This growth was fueled by contributions from both domestic and foreign investors, signaling confidence in the country’s economic policies and its position as a regional investment hub.

Domestic Investments Lead the Way

Domestic investments (DI) accounted for the largest share, contributing RM85.4 billion or 53.4% of the total approved investments. This reflects the growth of local businesses and their confidence in Malaysia’s pro-investment landscape. Foreign investments (FI) made up 46.6%, valued at RM74.6 billion, showcasing the country’s continued ability to attract international capital.

Top Sectors and Sources of Investment

The services and manufacturing sectors were the primary recipients of investments. The services sector led with RM97.2 billion in approved investments, accounting for 60.7% of the total, driven by substantial contributions from real estate, information and communications, and renewable energy projects. Notably, Asiabina Solar Sdn Bhd invested RM200.4 million in a 50 MW Large Scale Solar (LSS) project in Perak, highlighting Malaysia’s growing renewable energy sector.

The manufacturing sector also saw impressive growth, attracting RM60.1 billion, a 34.1% increase from the same period in 2023. The electrical and electronics (E&E) industry was a key driver, securing RM36.9 billion in investments, further solidifying Malaysia’s position as a regional manufacturing hub.

Foreign Investment Leaders

Among foreign investors, Austria topped the list with RM30.1 billion in approved investments, followed by Singapore with RM16.5 billion, China at RM9.8 billion, and the Netherlands with RM4 billion. The influx of foreign investments was supported by Malaysia’s strategic location and pro-business environment, attracting industries across manufacturing, services, and technology sectors.

Regional Investment Hotspots

The top states for investment were Kuala Lumpur, Selangor, Kedah, Pulau Pinang, and Johor, with Kuala Lumpur leading the pack at RM37.6 billion. These states continue to attract major projects, bolstered by strong infrastructure, skilled labor, and strategic positioning for both domestic and international markets.

Government Initiatives and Future Prospects

Investment, Trade, and Industry Minister Tengku Datuk Seri Zafrul Abdul Aziz hailed the 18% year-on-year growth as a testament to Malaysia’s pro-investment, business-friendly environment. He credited the success to policies like the New Industrial Master Plan 2030, the National Semiconductor Strategy, and the Green Investment Strategy, which are designed to promote industrial transformation and economic growth.

Looking ahead, the minister highlighted Malaysia’s strategic focus on capturing growth within ASEAN, which is forecasted to expand by 4.6% in 2024 and 4.7% in 2025. As part of this effort, MIDA has already embarked on 11 high-level investment missions to key countries including Germany, France, Australia, and Japan, resulting in 1,562 proposed projects worth RM54.8 billion currently under negotiation.

Employment and Economic Impact

Investments approved in 1H24 are expected to create 35,499 new jobs, with the services sector contributing 45,249 positions. In the manufacturing sector, 519 projects are set to generate 33,887 jobs, with 80% of these roles reserved for Malaysians.

Overall, the strong investment performance for the first half of 2024 underscores Malaysia’s growing appeal as a regional hub for both manufacturing and services, driven by sound economic policies, strategic location, and a clear focus on digital and industrial transformation.

Despite potential geopolitical uncertainties, the government remains cautiously optimistic about the year ahead, with expectations of continued growth driven by strong domestic demand, improved tourism, and industrial innovation.