Malaysia’s approved investments rise by 51 percent despite COVID-19 pandemic

Statistics from the Malaysian Investment Development Authority (MIDA) showed that 3,037 projects were approved in the first nine months of this year with a total investment value of 177.8 billion RM (42.3 billion USD), an increase of 51.5 percent compared to the same period last year. (Photo: thestar.com.my)

Kuala Lumpur – Investment in Malaysia has increased remarkably in spite of the negative impact of the COVID-19 pandemic.

Statistics from the Malaysian Investment Development Authority (MIDA) showed that 3,037 projects were approved in the first nine months of this year with a total investment value of 177.8 billion RM (42.3 billion USD), an increase of 51.5 percent compared to the same period last year. This was the period that the COVID-19 outbreak hit its peak with 24,599 new infections detected on August 26 alone in Malaysia.

According to MIDA, by sector, the manufacturing sector attracted the most investment with 522 projects with 103.9 billion RM or 58.4 percent of the total, representing an increase of more than 60 percent over the same period last year. It was followed by the services sector with 57.8 billion RM (32.5 percent) and the primary sector with 16.1 billion RM (9.1 percent).

Investment for the cultivation and consumption sector reached 16.1 billion RM. Accounting for only 9.1 percent, but it increased by 8.3 times compared to last year’s figure. Capital poured into this field mainly comes from domestic investors with 12.6 billion RM, or 78.3 percent.

Foreign direct investment (FDIs) for the period totalled 106.1 billion RM, accounting for 60 percent, with some 85.3 percent of the amount or 90.6 billion RM coming from Singapore, China, Austria, Japan and the Netherlands.

FDI is mainly poured into the manufacturing sector. The domestic investment amounted to 71.7 billion RM, or 40.3 percent, mainly poured into the service industry, cultivation and consumption.

The localities attracting the most investment from January 1 to September this year are Kedah, Sarawak, Kuala Lumpur, Selangor and Pahang with a total investment value of 134.8 billion RM, accounting for 75.8 percent.