The lives of Malaysians are set to change with the approval of RM264.6 billion worth of investments in 2022, a significant boost to the country’s economy. This development is expected to generate 140,370 new jobs nationwide, according to International Trade and Industry Minister Tengku Datuk Seri Zafrul Abdul Aziz. The approved investments will have a profound impact on communities across Malaysia, particularly in states such as Johor, Selangor, Sarawak, Kuala Lumpur, and Penang, which received the majority of the permitted investments.
With the services sector taking the lion’s share of the market, followed by the industrial and primary sectors, Malaysia’s investment landscape is poised for growth. According to Tengku Datuk Seri Zafrul Abdul Aziz, RM154 billion, or 58.2% of the total approved investments for the year, were allowed for the services sector.
Approved investments in the industrial sector were RM84.3 billion (31.9% of total investments), while those in the primary sector totaled RM26.3 billion (9.9%). The Malaysian Investment Development Authority (MIDA) played a crucial role in facilitating these investments, and Tengku Zafrul stated that domestic direct investments (DDIs) made up 38.3 percent, or RM101.3 billion, of the total permitted investments.
Investment Breakdown
While foreign direct investments (FDIs) made up 61.7%, or RM163.3 billion, of the total approved investments, the majority of these investments came from countries such as China, with RM55.4 billion, and the United States, with RM29.2 billion. The Netherlands and Singapore also contributed significantly, with RM20.4 billion and RM13.5 billion, respectively. Tengku Zafrul noted that there were two significant one-off investments that transpired in 2021 from Intel and China’s Risen Energy Co Ltd, which contributed to the overall growth in investments.
During the Malaysian Investment Development Authority (MIDA) media conference on Malaysia’s investment performance for 2022, Tengku Zafrul informed reporters that the approved investments from the previous year are anticipated to generate new jobs and stimulate economic growth. The states that received the majority of the permitted investments were Johor, with RM70.6 billion, followed by Selangor, with RM60.1 billion, Sarawak, with RM28.2 billion, Kuala Lumpur, with RM25.0 billion, and Penang, with RM16.3 billion.
Tengku Zafrul emphasized the importance of an efficient economic strategy, a welcoming business climate, political stability, and coordinated investment promotion by all agencies, both at the federal government and state levels.
Future Outlook
According to Tengku Zafrul, “With our increased focus on an efficient economic strategy, a welcoming business climate, political stability, and more coordinated investment promotion by all agencies, both at the federal government and state levels,” Malaysia is poised to attract more investments in the future. He stated that this must be improved even more, particularly in targeted trade and investment missions, in addition to existing activities, and through multinational free trade agreements like the Comprehensive and Progressive Agreement for the Trans-Pacific Partnership and the Regional Comprehensive Economic Partnership. Tengku Zafrul believes that this will boost investors’ trust in Malaysia and, in turn, improve Malaysians’ and the business communities’ standards of living.
What’s Next
As Malaysia looks to the future, it is essential to monitor the implementation of the New Investment Policy and the Malaysia Plan, which aim to promote economic growth and development. With the country’s investment landscape poised for growth, it is crucial to watch for updates on the progress of these initiatives and their impact on the economy. The Malaysian government’s efforts to attract more investments and create new jobs will be closely watched, and the success of these initiatives will have a significant impact on the lives of Malaysians and the country’s economic future. As Tengku Zafrul noted, the key to attracting more investments lies in creating a welcoming business climate, and it will be interesting to see how the government’s strategies play out in the coming years.
