Surge in approved FDI signals confidence of foreign investors in Malaysia, says Azmin
KUALA LUMPUR (Sept 13): The surge in Malaysia’s approved foreign direct investment (FDI) in the first half of 2021 (1H21), which grew by 223.1% year-on-year (y-o-y), signalled the confidence of foreign investors in the country’s stable and conducive economic climate and business ecosystem, said Senior Minister Datuk Seri Mohamed Azmin Ali.
Mohamed Azmin, who is also the international trade and industry minister, said this robust and impressive performance augured well for Malaysia’s path to a vibrant and sustainable economic recovery.
“The stellar performance also demonstrated that Malaysia’s strategy of positioning the country as an attractive investment destination of choice and a supply chain hub in ASEAN, particularly for manufacturing operations, was showing positive results,” he said in a statement today.
He shared that FDI drove the strong and vibrant performance of the manufacturing sector during the period, registering RM58.2 billion in approved investments. Domestic sources, meanwhile, contributed the remaining RM8.7 billion approved investments in this sector.
In terms of total approved investments, Malaysia recorded RM107.5 billion of FDI and domestic direct investment (DDI) in the manufacturing, services and primary sectors, chalking up a massive jump of 69.8% compared to the same period last year.
He said the investments, achieved amid a very challenging global economic landscape, involved 2,110 projects and are expected to generate 44,994 job opportunities in the country.
“Leveraging the positive progress in the National Recovery Plan (NRP), an improvement in the overall public health situation and gradual reopening of the economic sectors, Malaysia continued to attract high- value and high-tech investments, bolstered by our capacity and capability in providing high-skilled talent and firm readiness in adopting advanced technology for value-added industries,” he said.
In tandem with the National Investment Aspirations (NIA), he said, Malaysia consistently pursues more capital-intensive projects and those that support the development agenda of the nation, consistent with the environmental, social and governance (ESG) goals.
This was reflected by an increasing number of capital-intensive projects approved by the Malaysian Investment Development Authority (MIDA), Mohamed Azmin said.
Simultaneously, he said there was an emphasis on creating jobs across a wide spectrum of skills for the rakyat.
In this regard, the senior minister said, the 367 manufacturing projects worth RM66.9 billion approved during 1H21 will create 32,220 job opportunities in various positions and roles, leading on the path for high-value and skilled employment.
“These include 1,367 managerial positions and 4,031 technical professionals, such as engineers in the field of electrical and electronics (E&E), mechanical, chemical and other disciplines, reflecting the higher value chain transition of the manufacturing sector.
“The approved manufacturing projects will also require 4,144 skilled craftsmen,” he said.
Meanwhile, domestic investments, leading in the services and primary sectors, totalled RM45 billion or 41.9% of total approved investments in the six-month period.
Going forward, from the strategic vantage point of the NIA, the Ministry of International Trade and Industry (MITI) will continue to pursue high-quality investments to bring value to the nation and people, not just in preserving jobs but in creating new high value-added employment, he said.
“We are committed towards positioning Malaysia as the ideal partner for investors in the region, enhancing our economic complexity and propelling long-term growth of Malaysia through the flow of sustainable quality investments in new and complex growth areas,” Mohamed Azmin added. – Source: The Edge Markets