Foreign Direct Investment (FDI) posted a net inflow of RM35.3 billion (2013: RM38.2 billion) in 2014 to attain a position of RM467.5 billion as of end-2014 (2013: RM446.4 billion), according to the Statistics Department.
Meanwhile, income of RM62.6 billion was recorded in 2014 (2013: RM56.9 billion).
By component, the FDI inflows were mainly generated from equity & investment fund shares of RM30.3 billion (2013: RM31.3 billion) or 85.8% while debt instruments posted RM5.0 billion (2013: RM6.8 billion) or 14.2%.
“As for position, the value of equity & investment fund shares rose to RM429.2 billion from RM414.1 billion, an increase of RM15.1 billion (3.6%),” the Statistics Department pointed out.
Debt instruments also attained a higher position of RM38.4 billion from RM32.3 billion in 2013. Income on equity & investment fund shares recorded a value of RM62.1 billion (99.3%) and interest of RM500,000 (0.7%).
The top five investing countries for inflows in 2014 were Singapore, the Netherlands, Hong Kong, Cayman Islands and Bermuda. These countries recorded a total of RM22.4 billion or 63.4% of the total inflows into Malaysia.
With regard to position as of end-2014, FDI investment originated mainly from Singapore, Japan, Netherlands, the United States and Norway which amounted to a total of RM257.7 billion or 55.1% of total position in Malaysia.
“In terms of income, the US, Singapore, Netherlands, Japan and Bermuda were the top earners in 2014,” noted the Statistics Department. “These countries recorded a total of RM39.0 billion or 62.3% of total income in Malaysia.”
As for flows, the services sector was the largest recipient of FDI with 46.6% in 2014. This was followed by mining & quarrying sector (36.0%) and manufacturing sector (13.2%).
Meanwhile, the FDI position were channeled mainly into services sector (45.6%), manufacturing sector (43.7%) and mining & quarrying sector (7.7%). With regard to income, the manufacturing sector generated the highest earnings (44.1%) in 2014.
“This was followed by services sector (38.7%) and mining & quarrying sector (14.7%),” added the Statistics Department.