Malaysia’s approved investments hit RM216.5 bil in 2013

Investors continue to find Malaysia an attractive location for business as reflected in the surge in approved investments in the manufacturing, services and primary sectors which hit a new record of RM216.5 billion in 2013, a jump of 29% from RM167.8 billion in 2012.

The approved investments were in 5,669 projects including 14 mega projects with investments of RM1 billion each and 82 large projects with investments of RM100 million each.

The total approved projects are expected to create some 192,000 jobs with more high-income jobs in the managerial, supervisory and technical categories.

The Minister of International Trade and Industry, Dato’ Sri Mustapa bin Mohamed said in releasing the data on Malaysia’s investment performance in 2013 at the Malaysian Investment Development Authority (MIDA) Annual Media Conference in Kuala Lumpur on Friday, said of the total approved investments, 72.5% or RM157 billion came from local investors while the balance 27.5% (RM59.5 billion) were from foreign investors.

This is in line with the Government’s target of 73% domestic direct investments (DDIs) and 27% foreign direct investments (FDIs) by 2020.

Also present was his Deputy, Datuk Ir Hamim Samuri and foreign and local media, foreign diplomats, heads of industry associations and business councils and corporate leaders.

MIDA Chairman Tan Sri Amirsham A. Aziz delivered the welcome address.

Dato’ Sri Mustapa said the realised private investments as measured in terms of Gross Fixed Capital Formation in current prices reached RM161.1 billion in 2013, exceeding the average annual investment target of RM148 billion under the 10 Malaysia Plan by 8.9% and the quantum was also 14.9% more than the RM140.2 billion realised in 2012.

The approved investments in the services sector, the main contributor to the Malaysian economy, accounted for some RM144.7 billion or 66.8% of the total approved investments, followed by the manufacturing sector with investments of RM52.1 billion (24.1%) and the primary sector with investments of RM19.7 billion ( 9.1%).

The RM144.7 billion approved investments in the services sector in 4,796 projects saw an increase of 17.7% over the approved investments in 2012 of RM122.9 billion.

The services sector is expected to create over 97,000 jobs in the approved services projects for last year, the bulk of which will be high-income jobs.

Approved investments in the manufacturing sector also surged to RM52.1 billion, recording some 27% increase over the 2012 approvals of RM41.1 billion.

FDIs accounted for RM30.5 billion or RM58.5% of the total approved manufacturing investments in 2013.

The approved manufacturing projects are expected to create close to 93,000 jobs with a strong emphasis on high-skilled jobs.

Meanwhile, the primary sector, which comprises the mining, plantation and commodities and agriculture sub-sectors had attracted some RM19.7 billion in 86 approved projects last year, recording a four-fold increase from RM3.8 billion in 2012.

Foreign investments accounted for RM10 billion or 50.8% while the balance RM9.7 billion or 49.2% were domestic investments.

Going forward, Malaysia, which has built up a vibrant and business-friendly environment and being strategically located within ASEAN, is expected to continue to draw investors both foreign and locals.

Investors are encouraged to tap business opportunities in niche growth areas where Malaysia has developed significant expertise and experience as well as the necessary infrastructure  such as in the oil and gas and electrical and electronics industries, besides other high value, knowledge-intensive and high growth industries.

Source: Malaysia Investment Performance Report 2013 and MIDA Media Statement 28 Feb 2014