Digitalisation Helps Malaysia Remain a Top Global Investment Destination

Malaysia remains a top investment destination among global investors and a hub for business expansion. Investors continue to invest in Malaysia as the nation’s new leadership deepens its focus on strengthening the country’s economic growth and retaining Malaysia’s reputation as a stable investment destination.

Malaysia continues to thrive as one of the most technologically equipped economies in Asia. Through digitalisation, the country has become a hotbed of investment for both domestic and international players. Digital transformation is crucial for businesses of all sizes and industries. Many businesses are now going digital and equipping themselves for fast expansion. New services have been invented through the invention of the Internet of Things (IoT), artificial intelligence (AI) and cloud computing.

Malaysia attracted a total of RM193.7 billion (US$41.7 billion) worth of approved investments in the services, manufacturing and primary sectors involving 2,786 projects from January to September 2022 and is expected to create 98,414 job opportunities in the country. This is a 2.5% cent increase as compared to the RM188.9 billion (US$45.1 billion) investments approved in the same period last year.

During this period, the services sector assumed a significant role towards driving the country’s economic recovery, accounting for 58.5% of total approved investments with RM113.3 billion (US$24.4 billion). The manufacturing sector follows this at RM64.9 billion (US$14 billion) or 33.5% and the primary sector at RM15.5 billion (US$3.3 billion) or 8%.

The services sector accounted for the largest share of the total approved investments, amounting to RM113.3 billion (US$24.4 billion) from 2,167 projects which contributed to the growth of the country’s economy. This is a significant increase as compared to the RM70.4 billion (US$16.8 billion) investments approved for the services sector in the same period last year. A total of 39,772 new jobs are expected to be created in the services sector.

The information and communications sub-sector dominated the services sector, with approved investments valued at RM69.2 billion (US$14.9 billion) or 61.1%. From the total approved investments of this sub-sector, five (5) Information and Communication Technology (ICT) services which include data centre and cloud computing services were approved with investments totalling RM60.7 billion (US$13.1 billion) or 87.7%.

Malaysia continues to attract high-quality investments in the manufacturing sector from January to September 2022, reflecting the country’s competitiveness as a preferred location for investment in the region. The manufacturing sector accounted for RM64.9 billion (US$14 billion) (33.5%) from the total approved investments in various economic sectors, as compared to RM103.9 billion (US$24.8 billion) for the same period in 2021.

A total of 58,141 potential job opportunities are expected to be created in the manufacturing sector, where it will require 2,631 (4.5%) managerial positions, 6,277 (10.8%) professional/technical and supervisory roles, reflecting the higher value chain transition of the manufacturing sector. The approved manufacturing projects will also require 12,040 (20.7%) skilled employees.

The primary sector recorded a total of RM15.5 billion (US$3.3 billion) approved investments (8%) of the total approved investments in the various economic sectors from January to September 2022. FDI dominated the primary sector with investments valued at RM11.5 billion (US$2.5 billion) (74.2%), while the remaining RM4 billion (US$0.9 billion) (25.8%) is contributed from domestic sources.

Malaysia’s economy has grown rapidly. Due to ongoing reforms and recent digitalisation efforts, the country is experiencing its strongest recovery since the two-year pandemic that shut down the global economy. In collaboration with MITI, MIDA is actively working to attract investments in targeted industries from all over the globe to upgrade Malaysia’s industrial ecosystem and trade landscape. These initiatives include giving necessary business facilitation and value network to foreign, local, and start-up companies to ensure they can optimise operations in this dynamic market. The Government is eager to help businesses succeed and make Malaysia the ideal place for them to reach their full potential.

The Government remains resilient to discover new growth areas and empower businesses and local communities while upholding the principles of integrity, good governance, and the rule of law, in addition to promoting inclusivity and sustainable development through principles of SDGs and the New Investment Policy (NIP), under the umbrella of the National Investment Aspirations (NIA).

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