This surge in investment was backed by 2,948 investment projects, which are expected to create 79,187 new job opportunities.
“Malaysia’s strong investment performance of RM160 billion, representing an 18% year-on-year increase in H1 2024 is a testament to our commitment to creating a pro-investment, business-friendly environment that fosters industrial transformation and economic growth,” investment, trade and industry minister Tengku Zafrul Aziz said in a statement.
He said Asean is forecast to grow at 4.6% in 2024 and 4.7% in 2025 on solid improvement in both domestic and external demand, and Malaysia is determined to capture this growth.
“The H1 2024 approved investment figures reflect how investors appreciate Malaysia’s clear policies that provide a conducive landscape for companies to thrive.
“Driven by our robust frameworks, such as the New Industrial Master Plan 2030, the National Semiconductor Strategy and the Green Investment Strategy, more and more global businesses have begun to recognise Malaysia’s vast potential,” he added.
“The investment, trade and industry ministry (Miti) and the Malaysian Investment Development Authority (Mida) will continue to market Malaysia’s increasing appeal as a regional manufacturing or services hub to attract high-quality investments and drive sustainable economic growth while ensuring more business opportunities for our SMEs and higher-skilled jobs for Malaysians,” he said.
Miti said domestic investments took the lead in H1 2024, making up a significant 53.4% of the total approved investments, valued at RM85.4 billion.
“This is a clear sign of domestic businesses’ continued growth and confidence in the country’s economic policies.
“In contrast, foreign investments accounted for 46.6% of the total approved investments, worth RM74.6 billion.”
It noted that while both domestic investment and foreign investment play an important role in supporting Malaysia’s economy, the marked increase in domestic investment’s contribution to the country’s growth is a clear indication of local businesses’ confidence.
The top four states and federal territory that attracted the most investment in Malaysia were Selangor (RM35 billion), Kedah (RM31.9 billion), Pulau Pinang (RM13.1 billion), Johor (RM12.9 billion) and Kuala Lumpur (RM37.6 billion).
Austria led the approved investments with RM30.1 billion, followed by Singapore with RM16.5 billion, China (RM9.8 billion), the Netherlands (RM4 billion), and Taiwan (RM2.4 billion).
Malaysia’s manufacturing sector has emerged as a bright spot in the country’s economic landscape, attracting RM60.1 billion in approved investments in H1 2024.
“This represented a 34.1% increase from the RM44.9 billion recorded in the same period last year, indicating a strong rebound in investor confidence,” said the ministry.
It said electrical and electronics is the major industry underpinning Malaysia’s manufacturing economic growth, with approved investments of RM36.9 billion.