Latest news with #RM89.8
New Straits Times
5 hours ago
- Business
- New Straits Times
Malaysia remains attractive investment destination
MALAYSIA continues to draw strong investor interest despite global headwinds. The Malaysian Investment Development Authority (MIDA) said that the country has secured RM89.8 billion in approved investments for the first quarter of 2025. This marks a steady 3.7 per cent year-on-year increase, and is set to generate over 33,300 new employment opportunities for Malaysians. Last year, Malaysia recorded RM378.5 billion in approved investments, the highest in the nation's history. According to MIDA, foreign investments dominated the investment landscape for Q1 of 2025, contributing RM60.4 billion or 67.3 per cent of total investments, highlighting Malaysia's position as a top-tier investment destination. REMAINING RESILIENT Although Malaysia cannot escape shifts in the global economy, the country can prepare and remain resilient. Economist Dr Geoffrey Williams said national stability — reflected in stable prices, consistent growth and predictable policies — is key to maintaining business and household confidence. He added that such stability, supported by social cohesion and clear policies, underpins Malaysia's economic resilience and competitiveness. Universiti Sains Malaysia political analyst Professor Datuk Dr Sivamurugan Pandian said that stability builds trust and confidence, especially among investors and in terms of attracting foreign direct investment. "Without stability, it sends various signals to investors, as though the environment is uncertain and trust in the government is eroding, even if much of it is sentiment or perception," the analyst added. He said that the end result always becomes a benchmark or indicator of the government's strength. "Political rhetoric, when backed by implementation, delivery systems, structures or trusted institutions that produce solid results, will attract investors, even more so if the policy is investor-friendly, with a flexible approach and mechanism," he explained.
New Straits Times
a day ago
- Business
- New Straits Times
Tengku Zafrul: Foreign investors remain commited to Malaysia amid global uncertainty
KUALA LUMPUR: Foreign companies with existing investments in Malaysia continue to maintain their operations, with no signs of withdrawal despite ongoing global economic headwinds. Minister of Investment, Trade and Industry, Datuk Seri Tengku Zafrul Tengku Abdul Aziz, said this reflects the strong confidence foreign investors have in Malaysia's robust and resilient investment ecosystem. However, he noted that new investors are approaching with caution, adopting a "wait-and-see" stance amid rising geopolitical complexities. "This is particularly due to the increasingly complex geopolitical uncertainties. So far, no existing investors have expressed intentions to leave Malaysia," he said during a press conference after the Regional Socialisation of the AEC Vision 2045 Asean Community Strategic Plan. "They remain committed to their investments, and no cancellations have been announced. In our engagement sessions with investors, we found that various factors are being considered before investment decisions are made, particularly the geopolitical tensions between the United States and China." Tengku Zafrul added that forecasting future investment flows has become increasingly difficult given the rapidly evolving global landscape. On Wednesday, Malaysia reported approved investments totalling RM89.8 billion for the first quarter of 2025, marking a 3.7 per cent increase compared to the same period last year, despite challenging global economic conditions. Of this amount, foreign investments (FI) contributed RM60.4 billion, or 67.3 per cent, while domestic investments (DI) accounted for RM29.4 billion, or 32.7 per cent. Tengku Zafrul said the investment figures for the first quarter of 2025 were unexpected but a highly positive development. "Typically, investment performance in the first quarter is somewhat slow, as most investment decisions are made towards the end of the year. But this time, the figures are very encouraging," he said. "Nearly 70 per cent of the total investments were foreign direct investments (FDI), with the services sector, particularly the digital economy, emerging as the primary contributor," he explained. He added that the country's gross domestic product (GDP) growth forecast for 2025 remains on track. "We continue to see investment performance aligning with the country's GDP growth," he said.
New Straits Times
2 days ago
- Business
- New Straits Times
Malaysia attracts RM89.8bil in Q1 2025 investments despite global challenges
KUALA LUMPUR: Malaysia secured RM89.8 billion in approved investments for the first quarter of 2025 (Q1 2025), a steady 3.7 per cent year-on-year increase despite a challenging and less favourable global economic backdrop. An economist said this reflects continued confidence among domestic and foreign investors, particularly in targeted growth areas. Bank Muamalat Malaysia Bhd chief economist Dr Mohd Afzanizam Abdul Rashid, however, cautioned that the outlook for the second half of 2025 could be more challenging as investment sentiment remains sensitive to global uncertainties. "While the first quarter data is encouraging, much will depend on the outcome of ongoing tariff negotiations. Heightened trade tensions could weigh on investor confidence going forward," he told Business Times. Disclosing the Q1 figure on Wednesday, Malaysian Investment Development Authority (MIDA) said the RM9.8 billion approved investments - spread across 1,556 projects in manufacturing, services and primary sectors - are set to generate over 33,300 new employment opportunities for Malaysians. "The results reflect continued investor confidence in the country's clear policies and long-term fundamentals, bucking the trend of cautious international capital flows due to geopolitical and macroeconomic volatility, as well as intensifying global competition for fresh investments," MIDA said in a statement. Afzanizam noted that the key driver behind the performance is the establishment of the Johor-Singapore Special Economic Zone (JS-SEZ). Launched in January this year, the SEZ has so far attracted RM28.3 billion in investments from Singapore alone. "With Johor emerging as the largest recipient of approved investments in the quarter, this suggests that the SEZ development model is not only a powerful catalyst for investment activity but also a strategic tool for fostering regional economic integration. "The JS-SEZ is expected to bring spillover benefits to other sectors, particularly the construction industry, with the development of data centres and supporting infrastructure now underway," he added. Investment, Trade and Industry Minister Tengku Zafrul Abdul Aziz said while the investments are set to create 33,300 new jobs, what is equally important is the increase in the country's managerial, technical and supervisory index. Tengku Zarul noted that the index had risen from 44.2 per cent in Q1 2024 to 46.3 per cent in Q1 2025, reflecting the nation's steady success in creating higher-skilled, better-paying jobs for Malaysians. "With a better integrated Asean economy, which we are working hard on as Asean chair, we are also paving the way for Malaysia's continued positioning as a manufacturing and services hub to this fast-growing 680-million strong region," he said. According to MIDA, foreign investments (FI) dominated the investment landscape, contributing RM60.4 billion or 67.3 per cent of total investments, while domestic investments (DI) accounted for RM29.4 billion or 32.7 per cent. Singapore emerged as the leading foreign investor with RM28.3 billion, followed by the United States (RM9.9 billion), China (RM7.9 billion), British Virgin Islands (RM6.6 billion) and Taiwan (RM1.7 billion). "In terms of states, Johor recorded the highest value of approved investments (RM30.1 billion), followed by Kuala Lumpur (RM15.0 billion), Sabah (RM10.9 billion), Selangor (RM10.2 billion), and Penang (RM9.2 billion)," it said. MIDA said the services sector emerged as a powerhouse of economic growth, securing RM57.8 billion in approved investments across 1,342 projects. The sector's performance is highlighted by a robust 39.5 per cent year-on-year growth, and will create 15,051 new jobs, marking a significant milestone in the nation's economic development. As for the manufacturing sector, MIDA secured RM30.5 billion in approved investments for Q1 2025. The approval of 207 projects is anticipated to yield 18,317 new job openings. For the primary sector, it secured RM1.5 billion in approved investments across seven projects, mainly in mining. "The approved investments are dominated by domestic sources with RM1.1 billion (72.1 per cent), while foreign sources contributed RM0.4 million (27.9 per cent)," it said. MIDA said Malaysia continues to position itself as a top-tier investment destination. As of June 10 this year, MIDA managed a robust pipeline of proposed projects valued at RM48.5 billion. "The services sector leads this momentum, with 683 projects accounting for RM27.6 billion, while the manufacturing sector, contributing RM20.9 billion across 89 projects. "Complementing this pipeline, an additional RM59.3 billion in high-potential investment leads are currently under negotiation. "These figures signal not only a healthy appetite for investment but also growing confidence in Malaysia's economic fundamentals and policy direction," it said. Overall, Tengku Zafrul said the investment environment in 2025 is expected to remain challenging due to continued geopolitical and macroeconomic headwinds stemming from the US-China trade war. Nonetheless, he said although major markets' protectionist policies and supply chain frictions continue to weigh in on companies' investment decisions, Malaysia's clear policies should be able to attract more investments from Asia's growing economy. "This is expected to expand to about 42 per cent of global growth domestic product by 2040," he added.
The Sun
2 days ago
- Business
- The Sun
Malaysia records RM89.8 billion approved investments in first quarter
KUALA LUMPUR: Malaysia has secured RM89.8 billion in approved investments in the first quarter of 2025 (Q1'25), a steady 3.7% year-on-year increase despite a challenging global economic backdrop. In a statement today, the Malaysian Investment Development Authority (Mida) said these investments, spread across 1,556 projects in manufacturing, services and primary sectors, are set to generate over 33,300 new employment opportunities for Malaysians. 'The results reflect continued investor confidence in the country's clear policies and long-term fundamentals, bucking the trend of cautious international capital flows due to geopolitical and macroeconomic volatility, and the intensifying global competition for fresh investments. 'Foreign investments dominated the investment landscape, contributing RM60.4 billion or 67.3% of total investments, while domestic investments accounted for RM29.4 billion or 32.7%,' it said. Besides job creation, Investment, Trade and Industry Minister Tengku Datuk Seri Zafrul Aziz said, the increase in the Managerial, Technical, and Supervisory Index to 46.3% from 44.2% in the same quarter last year reflects the country's success in creating higher-skilled, better-paying jobs. 'With a better integrated Asean economy, which we are working hard on as Asean chair, we are also paving the way for Malaysia's continued positioning as a manufacturing and services hub to this fast-growing 680-million strong region,' he said. He said the investment environment in 2025 is expected to remain challenging due to continued geopolitical and macroeconomic headwinds from the US-China trade war. 'Nonetheless, although major markets' protectionist policies and supply chain frictions continue to weigh in on companies' investment decisions, Malaysia's clear policies should be able to attract more investments from Asia's growing economy, which is expected to expand to about 42% of global gross domestic product by 2040,' he said. Besides bringing in good jobs and business opportunities, Mida CEO Datuk Sikh Shamsul Ibrahim Sikh Abdul Majid said the projects secured by Mida in Q1'25 supported the national effort to build a more diversified and resilient economy. 'To remain a choice location for high-performing companies, we will strengthen our local ecosystem as enablers and prepare our workforce to seize new job and leadership opportunities. 'By ensuring Malaysia remains relevant in global value chains, we can attract and anchor investments that benefit our economy, enterprises and people for the long haul,' he said. As of June 10, 2025, Mida is actively managing a robust pipeline of proposed projects, collectively valued at RM48.5 billion. 'The services sector leads this momentum, with 683 projects accounting for RM27.6 billion, while the manufacturing sector contributes RM20.9 billion across 89 projects. 'Complementing this pipeline, an additional RM59.3 billion in high-potential investment leads are currently under negotiation. These figures signal not only a healthy appetite for investment but also a growing confidence in Malaysia's economic fundamentals and policy direction,' it said. – Bernama
BusinessToday
2 days ago
- Business
- BusinessToday
Q1 Investments Climb To RM89.8 Billion, Driven By Foreign Inflows
Foreign investments led the way in Malaysia's approved investments for the first quarter of 2025, totalling RM60.4 billion out of RM89.8 billion recorded during the period, according to the Malaysian Investment Development Authority (MIDA). The overall investment figure represented a 3.7% increase compared to the same quarter last year, MIDA said in a statement on Wednesday. Domestic investments made up RM29.4 billion of the total. The data reflects continued investor interest in Malaysia's industrial and services sectors amid global economic shifts. As at press time, the exchange rate stood at US$1 to RM4.2370. Reuters Related
