Malaysia’s Q1 2024 Investment Surge: RM83.7 Billion Approved, 29,000 New Jobs Created

Malaysia’s Q1 2024 Investment Surge: RM83.7 Billion Approved, 29,000 New Jobs Created

Malaysia has recorded an impressive performance in the first quarter of 2024 (Q1 2024), attracting RM83.7 billion in approved investments across various sectors. This marks a substantial 13% increase from the same period last year, and these investments are set to generate 29,027 new job opportunities for Malaysians.

Sector Breakdown and Investment Sources

The approved investments span the manufacturing (RM43.0 billion), services (RM39.3 billion), and primary sectors (RM1.4 billion). Foreign investments (FI) contributed RM47.0 billion, or 56.2%, while domestic investments (DI) accounted for RM36.7 billion, or 43.8%. Both categories showed growth compared to Q1 2023, with FI increasing by 23.8% and DI by 1.6%.

Austria led foreign investment sources with RM30.1 billion, followed by Singapore (RM5.6 billion), the Netherlands (RM3.6 billion), the People’s Republic of China (RM3.4 billion), and the United States (RM632.8 million).

Significant investments were recorded in Kedah (RM31.3 billion), W.P. Kuala Lumpur (RM21.5 billion), Selangor (RM12.4 billion), Sarawak (RM4.2 billion), and Johor (RM4.1 billion).

Minister’s Statement and Economic Vision

YB Senator Tengku Datuk Seri Utama Zafrul Aziz, Minister of Investment, Trade, and Industry (MITI), praised the results, stating, “Approved investments of almost RM84 billion for Q1 2024, up by 13% year-on-year, reflect how Malaysia has earned investors’ trust. Working closely with MIDA, MITI has delivered not just the investment numbers but also their speedy realisation to quickly translate these investments into business opportunities for SMEs and jobs for Malaysians.”

He further emphasized the importance of long-term industrial reforms and strategic policy efforts to nurture a conducive investment ecosystem, aimed at driving productivity and sustainable growth and propelling Malaysia into one of the top 30 largest economies globally by 2033.

The manufacturing sector leads the Charge

The manufacturing sector saw a significant boost with RM43.0 billion in approved investments, a remarkable 174.9% increase from Q1 2023. This sector alone is expected to create 17,991 new jobs. Foreign investments dominated this sector, contributing RM38.2 billion, while domestic investments accounted for RM4.8 billion.

Notably, Infineon Technologies (Kulim) Sdn. Bhd. announced an additional RM30.1 billion investment to expand its silicon carbide power fabrication plant in Kulim, Kedah. Other key industries within manufacturing that contributed to this growth are Electrical and Electronics (RM34.3 billion ) , Transport Equipment (RM2.2 billion), Chemicals and Chemical Products (RM2.1 billion),
Fabricated Metal Products (RM986.7 million) Food Manufacturing (RM692.3 million)

The services sector shows robust growth.

The services sector attracted RM39.3 billion in investments across 994 projects, expected to create 10,988 jobs. Domestic investments were the major contributors, making up 77.9% of the total.

The top-performing sub-sectors were Information and Communications (RM17.3 billion), Real Estate (RM13.6 billion), Global Establishments (RM3.4 billion), Financial Services (RM2.3 billion) and Utilities (RM1.8 billion)

Primary Sector Investment Highlights

The primary sector secured RM1.4 billion in investments, mainly in mining, creating 48 new jobs. Domestic investments dominated with RM1.3 billion, while foreign investments contributed RM161.1 million.

Future Prospects and Strategic Initiatives

Since the beginning of the year, MITI and MIDA have undertaken nine high-level overseas investment missions, exploring opportunities and attracting new investments. As of May 31, 2024, MIDA is actively pursuing 1,775 proposed projects worth RM68 billion.

Effective June 1, 2024, InvestKL has been integrated into MIDA to streamline functions and enhance investment facilitation. Mr. Sikh Shamsul Ibrahim, CEO of MIDA, remarked, “Our Q1 2024 performance showcases our commitment to attracting investors and fostering growth and innovation. We aim to propel Malaysia to unprecedented economic heights through strategic partnerships and forward-thinking policies.”

Malaysia’s Q1 2024 investment performance underscores its attractiveness as an investment destination. With substantial investments in key sectors and a focus on sustainable and inclusive growth, Malaysia is poised for continued economic advancement and job creation.

For more information, please visit MIDA’s website and follow their updates on various social media platforms.

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