Three data centre projects account for RM51.1 billion (USD11.6 billion) of the money Malaysia approved for investment in the first half of 2022. That one line explains much of why services came out on top. The Malaysian Investment Development Authority (MIDA) put the total for January to June at RM123.3 billion (USD28.0 billion), spread over 1,714 projects, in a statement reported by Bernama and The Edge.
The approvals are expected to create 57,771 jobs.
Services take 63.3 per cent
Services drew RM78.0 billion (USD17.7 billion) from 1,351 projects, or 63.3 per cent of everything approved. A year earlier the sector had RM52.4 billion (USD12.6 billion), so the gain is 48.8 per cent. Foreign investors supplied RM50.4 billion (USD11.5 billion) of the services total, 64.6 per cent, and domestic sources the other 35.4 per cent, or RM27.6 billion (USD6.3 billion). The sector is expected to add 22,569 jobs.
Information and communications led the sub-sectors with RM53.7 billion (USD12.2 billion), or 68.8 per cent, and grew by 1,300 per cent. The three data centre projects make up 95.2 per cent of that figure. MIDA named PRC’s Bridge Data Centres Malaysia III Sdn. Bhd. and ByteDance System Sdn. Bhd., plus the listed Malaysian company YTL Power International Berhad. Real estate followed at RM11.0 billion (USD2.5 billion), then utilities at RM4.8 billion (USD1.1 billion).
Manufacturing falls from a megaproject year
Manufacturing took RM43.1 billion (USD9.8 billion), or 34.9 per cent, against RM75.8 billion (USD18.3 billion) in the same months of 2021. MIDA said one megaproject approval had pushed the 2021 number so high. The primary sector added RM2.2 billion (USD0.5 billion).
Foreign money made up 82.4 per cent of manufacturing approvals, at RM35.5 billion (USD8.1 billion). Expansion and diversification projects rose 31.9 per cent to RM26.0 billion (USD5.9 billion), while new projects accounted for RM17.1 billion (USD3.9 billion). Electrical and electronics products led at RM19.4 billion (USD4.4 billion), ahead of petroleum products including petrochemicals at RM5.1 billion (USD1.2 billion).
The sector should generate 35,032 jobs. Among them are 1,745 managerial posts, 4,122 professional, technical and supervisory roles, and 7,491 skilled craftsmen such as electricians and welders.
Where the money came from
Foreign direct investment made up 70.9 per cent of the total, or RM87.4 billion (USD19.9 billion). Domestic sources contributed 29.1 per cent, or RM35.9 billion (USD8.2 billion). China topped the foreign list with RM48.6 billion (USD11.0 billion), followed by Germany at RM9.0 billion, Singapore at RM6.0 billion, Brunei at RM5.1 billion and the Netherlands at RM4.1 billion.
Johor, Selangor, Sabah, Kedah and Penang together took RM103.5 billion (USD23.5 billion), or 83.9 per cent of approvals.
The minister’s pitch
Senior Minister and International Trade and Industry Minister Datuk Seri Mohamed Azmin Ali said Malaysia is on course to secure more high-quality, high-impact and capital-intensive projects, with services as the key growth driver. He said the ministry would work on “economic complexity” and on creating high-income jobs.
“We will intensify our focus towards sectors such as digital economy, electrical and electronics, pharmaceutical, chemical and aerospace, with significant economic potential and sustainable long-term growth,” Azmin said.
The government has also lined up trade and investment missions aimed at high technology, innovation and research-driven industries. A Digital Investment Office, run jointly by MIDA and MDEC, was set up to coordinate digital investments, part of a goal to attract RM70.0 billion (USD15.6 billion) toward digitalisation by 2025.
Sources
- Malaysia Attracted RM123.3 Billion (USD28.0 Billion) of Approved Investments For The First Half Of 2022
- Malaysia attracted RM123.3b approved investments in 1H22; led by services sector
Sources
- Malaysia Attracted RM123.3 Billion (USD28.0 Billion) of Approved…
- Malaysia attracted RM123.3b approved investments in 1H22; led by…
