Chief statistician Mohd Uzir Mahidin said FDI inflow in Malaysia showed a recovery after registering RM9.1 billion, “the highest investment since the Covid-19 pandemic hit Malaysia”.

“The improved investment was contributed by higher inflow in equity and investment fund shares, precisely in the manufacturing and services sectors,” he said in a statement.
Last year, FDI dropped by 54.8% to RM14.6 billion due to the pandemic. In 2019, Malaysia saw a total of RM32.4 million in FDI.

Uzir said Malaysia’s direct investment abroad (DIA) showed an increasing trend by recording a net outflow of RM7.8 billion in the first quarter, significantly contributed by higher outflow in equity and investment fund shares.

“The accumulated investment overseas also improved to RM518.8 billion, mostly into Singapore and Indonesia, while the United Kingdom overtook the Cayman Islands as the third top destination,” he said.

Last year, DIA flow plummeted by 54% to RM11.9 billion owing to lower investment in mining and services sectors.

Uzir said Malaysia’s economy is expected to improve this year, based on the better performance of key economic indicators in the first quarter.

This is despite the increasingly dynamic evolution of the pandemic, the risk of transmission and renewed containment actions that could continue to affect investment.

“Although the decline in foreign investment (last year) may seem worrisome, FDI in Malaysia recorded a higher inflow in Q1 2021,” he said.

“And the accumulated FDI remained prominently high, signalling an improved investment performance for the year,” he said, adding that the accumulated FDI increased by RM11 billion to RM698.8 billion.

We are live on Telegram, subscribe here for breaking news and the latest announcements.