Malaysia attracted a total of RM153.2 billion worth of investments in the manufacturing, services and primary sectors for the first nine months of 2015, according to International Trade and Industry Minister Datuk Seri Mustapa Mohamed.
This was lower than the RM180 billion approved in the same period last year. The drop was mainly due to a big decline in the approvals for investments in the real estate sector from RM57.9 billion in the January‐September 2014 period to RM 21.0 billion in the corresponding period this year.
This is consistent with the softening in the property market. Approvals in the other sectors however, notably manufacturing, remained robust. “This indicates that investor confidence in Malaysia remains high despite the decline in global FDI (foreign direct investment) inflows and the challenging global economic environment,” Mustapa pointed out in a media statement.
The investments approved were in 3,727 projects and are expected to generate 139,720 job opportunities for Malaysians. Domestic investments of RM124.9 billion accounted for 82% of investments, with foreign investments making up the rest.
The services sector accounted for the largest share of the total investments, contributing 54.0% or RM82.7 billion, followed by the manufacturing sector with investments of RM67.7 billion or 44.2%, and the primary sector with approved investments of RM2.8 billion or 1.8%.
Zooming into the manufacturing sector, the Malaysian Investment Development Authority (MIDA) noted that a total of 522 projects worth RM67.7 billion were approved in January‐September 2015 compared with RM63.3 billion in 622 projects during the same period of 2014 (representing an increase of 7% in capital investments).
Regional Corridors attracted 43.5% of approved investments in the manufacturing sector for January‐September 2015. By value of investments in projects with approved Manufacturing License, the Sarawak Corridor of Renewable Energy (SCORE) registered the highest level with investments of RM10.6 billion, followed by Northern Corridor Economic Region (NCER) (RM6.6 billion), Iskandar Malaysia (RM3.3 billion), Eastern Corridor Economic Region (ECER) (RM1.8 billion), and the Sabah Development Corridor (SDC) (RM300 million).