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Foreign investors continue to find Malaysia a choice location for their manufacturing operations. Approved foreign direct investments (FDIs) in 2013 totaled RM30.5 billion, registering an increase of 46% compared with RM20.9 billion in 2012.
The US topped the list with investments of RM6.3 billion, Minister of International Trade and Industry, Dato’ Sri Mustapa Mohamed, said in announcing the 2013 full-year data at the Malaysian Investment Development Authority (MIDA) Annual Media Conference on Malaysia’s Investment Performance in 2013 in Kuala Lumpur yesterday.
He said FDIs from Asian countries accounted for some 58% of total FDI inflows into the manufacturing sector in 2013 while some 38% were from the US and EU.
Approved FDIs accounted for 58.5% of the total manufacturing investments of RM52.1 billion last year.
FDIs in new investments amounted to RM22.8 billion or 74.7% of total FDIs in the sector while the balance RM7.7 billion (25.3%) were for expansion and diversification.
By industry, the Electronics and Electrical (E&E) industry attracted some RM8.5billion in FDIs which was two and a half times the approved FDIs in the industry in 2012.
Other major industries which saw an increase in foreign investment interests include Basic Metal Products, RM4.4 billion; Petroleum Products including Petrochemicals, RM3.2 billion; Food Manufacturing, RM2.3 billion; Transport Equipment, RM2.2 billion and Non-Metallic Mineral Products, RM1.3 billion.
Chemicals and Chemical Products continued to receive significant FDIs of RM3.8 billion, though lower than the quantum in 2012 of some RM5.7 billion.
The approved investments from the US of RM6.3 billion were in 19 projects followed by the Republic of Korea with RM5.5 billion in 13 projects, Singapore with RM4.5 billion in 126 projects, Japan, RM3.6 billion in 55 projects and China with RM3 billion in 22 projects.
These five top sources of FDIs accounted for some RM22.9 billion or some 75.1% of the total FDIs approved in the manufacturing sector last year.
Other major foreign investors were from the Netherlands and Germany.
Source: Malaysia Investment Performance Report 2013 and MIDA Media Statement 28 Feb 2014
