Malaysia is targeting to achieve RM 200 billion of approved investments for 2018 in the manufacturing, services and primary sectors.
Malaysian Investment Development Authority (MIDA) revealed projects with investments totalling at RM 69.6 billion already in the pipeline by January 31 coming from manufacturing and manufacturing related services projects.
International Trade and Industry Minister Datuk Seri Mustapa Mohamed said Malaysia is aiming to secure at least RM 80 billion in investment approvals and over 12 companies to establish their Principal Hub in Malaysia.
Meanwhile, Malaysia overall investment performances in 2017 saw a declined by 7.4 per cent and registered approved investments of RM 197.1 billion in the manufacturing, services and primary sectors.
Mustapa said the decline was due to lower approved investments recorded in the services sector which saw a decline of 17.2 per cent, from RM146.2 billion in 2016 to RM121.1 billion in 2017.
“The decline was affected by the real estate subsector which saw a 28.7 per cent drop in value to RM45.7 billion despite a 43.1 per cent increase in the number of projects approved, reflecting a change in investment strategies towards smaller sized projects in this subsector.
“However, both manufacturing and primary sectors registered an increase of 8.9 per cent and 51.2 per cent to to RM63.7 billion and RM12.4 billion respectively.
“The qualitative aspects of investments attracted into Malaysia in 2017 were evident on many fronts, such as job and business opportunities as well as the transfer of technology,” he said during the Malaysia Investment Performance Report 2017 .
Mustapa also revealed that the RM 197.1 billion approved investment has generated 5,466 projects and additional 139,520 job opportunities for Malaysia.
“Domestic direct investments (DDI) accounted for the bulk of it or 72.2 per cent at RM142.4 billion, while foreign direct investments (FDI) contributed RM54.7 billion, making up 27.8 per cent of the total.
“The sector’s biggest foreign investor was People’s Republic of China, Switzerland, Singapore, the Netherlands and Germany.
“These five nations jointly accounted for RM12.1 billion or 56% of foreign investments approved in 2017. In 2016, the top foreign investors were PRC, the Netherlands, Germany, UK and Republic of Korea with total investments of RM15.4 billion,” he added.
Mustapa said despite China being the top FDI source for two years in a row, the value of investments has dropped by 18.7 per cent from RM4.8 billion in 2016 to RM3.9 billion in 2017.
China’s investments,he said, have diversified into many industries including the non-metallic mineral products, transport equipment, rubber products and E&E products.
“The E&E industry especially has evolved in Malaysia over the years.The industry now has a full range of semiconductor, solar and LED clusters with many companies undertaking higher value added products and front-end activities including design, research and development.
“The strengthening of the E&E ecosystem has spilled over to the development of the local industry players,” he said.