Economy HIGHLIGHTS z10

A SIGNAL OF CONFIDENCE IN FDI IN MALAYSIA’S IMPRESSIVE 1H 2021 PERFORMANCE

13 September 2021, Kuala Lumpur – The manufacturing sector accounted for the largest share of the total investments in 1H 2021, amounting to RM66.9 billion (62.2%), followed by the services sector with RM34.1 billion (31.7%) and the primary sector with RM6.5 billion (6.1%). A total of 367 manufacturing projects worth RM66.9 billion were approved in first six months of 2021, compared to RM36.4 billion in the same period last year.

In a statement by Ministry of Trade and Industry (MITI) and Malaysia Investment Development Authority (MIDA), Malaysia has recorded an impressive performance for the first half of 2021 with foreign direct investments (FDI) increased by 223.1 per cent compared to 1H 2020.

“This signals the confidence of foreign investors in the country’s stable and conducive economic climate and business ecosystem,” said the Senior Minister of MITI.

“Malaysia’s strategy in positioning itself as an attractive investment destination of choice and a supply chain hub in ASEAN, especially in manufacturing operations has shown positive results. This is evident with the RM58.2 billion registered approved investments from FDI and the remaining RM8.7 billion from domestic sources,” said the Ministry.

Amidst a challenging global landscape, Malaysia recorded a total approved investment of RM107.5 billion of FDI and domestic direct investments (DDI) from manufacturing, services and primary sectors. This impressive rebound of 69.8 per cent compared to the same period last year, involved a total of 2,110 projects which is expected to generate 44,994 job opportunities in the country.

According to MIDA, in terms of top-performing industries in 1H 2021, the electrical and electronics (E&E) (RM47.1 billion), fabricated metal products (RM5.1 billion), chemicals and chemical products (RM3.8 billion), food manufacturing (RM3.7 billion) and rubber products (RM3.6 billion) made up 94.6 per cent of total approved investments for this sector.

The approved investment will be requiring 1,367 managerial positions and 4,031 technical professionals such as engineers in the field of E&E, mechanical, chemical and other disciplines, reflecting the higher value chain transition of the manufacturing sector.

In the manufacturing sectors, the approved manufacturing projects will also require 4,144 skilled craftsmen such as plant maintenance supervisors, tools and die makers, machinists, IT personnel, quality controllers, electricians and welders. The capital investment per employee (CIPE) ratio of the projects approved in 1H 2021 increased to RM2,077,245 from RM1,333,559 during the same period last year.

In the service sectors, a total of 1,717 services were approved in the same period in 2021. It will bring in job opportunities for 12,400 peoples which is nearly a 30 per cent increase for the same period in 2020. Domestics investment is still the larger portion in this area with 93.6 per cent total of approved investments or RM31.9 billion, while RM2.2 billion were from foreign sources.

“Malaysia continues to attract high-value and high-tech investments, supported by our capacity and capability in providing high-skilled talents and firm readiness in adopting advanced technology for value-added industries,” said the Ministry.

Aligned with the National Investment Aspirations (NIA), Malaysia is consistently pursuing more capital-intensive projects that support the development agenda of the nation, and to be consistent with the Environmental, Social and Governance (ESG) goals. These projects will further enhance Malaysia’s industry ecosystem and to boost employment opportunities in the field of high-tech skills as well as to enable local businesses to leverage on the global value chain.

“Malaysia is committed to position itself as the ideal partners for investors in the region, enhancing our economic complexity and to propel for long term growth through sustainable quality investments in new and complex growth areas. This is towards ensuring a robust and sustainable recovery, equitable economic growth and shared prosperity for Malaysia,” said the Senior Minister of MITI.