Investments abroad registered RM19.7 billion versus RM10.2 billion in 2020.

As at the end of 2021, the foreign direct investment (FDI) position had risen to RM788.8 billion, said the Department of Statistics Malaysia (DOSM), which published the Statistics of FDI in Malaysia and Malaysia’s direct investment abroad (DIA) for 2021.

Chief statistician Mohd Uzir Mahidin said the country’s economic activities are gradually recovering from the effects of the Covid-19 pandemic.

Based on the World Investment Report by the UN Conference on Trade and Development, FDI flows to developing countries in Asia rose by 19% to US$619 billion in 2021.

“As such, foreign investments into Malaysia in 2021 rose to register RM48.1 billion, the highest since 2016,” he said in a statement.

Uzir revealed that the manufacturing sector recorded net inflows of RM29.5 billion, making it the largest FDI.

The manufacturing sector attracted 61.4% of total investments, particularly in electrical, transport equipment and other manufacturing subsectors.

The services sector was the second highest contributor, mainly in financial activities, followed by mining which received equity and investment fund shares.

Overall, as of the end of 2021, FDI in the country had increased by RM103.9 billion, accumulating to RM788.8 billion. The services sector remained the largest recipient overall at 49.2% or RM388.4 billion, driven by financial and wholesale activities.

This was followed by the manufacturing sector which accounted for 42.2% of total FDI, particularly in electrical, transport equipment and other manufacturing subsectors.