Behind Malaysia’s headline investment number is a hiring forecast: 57,771 jobs. The Malaysian Investment Development Authority (MIDA) said projects approved between January and June 2022 are worth RM123.3 billion (USD28.0 billion), and 1,714 projects are behind that sum.
Where those jobs fall is spelled out in the release. Services should add 22,569 positions. Manufacturing is expected to produce 35,032, of which 1,745 are managerial and 4,122 are professional, technical or supervisory, including engineers in electrical and electronics, mechanical and chemical fields. Another 7,491 are for skilled craftsmen: tools and die makers, machinists, quality controllers, electricians and welders.
A recovery since the border reopened
MIDA described an economy on a recovery path since the country reopened its borders on the 1st April 2022, helped by domestic demand and eased containment measures.
Foreign direct investment supplied 70.9 per cent of approvals, or RM87.4 billion (USD19.9 billion). Domestic sources added 29.1 per cent, or RM35.9 billion (USD8.2 billion). China was the largest foreign investor at RM48.6 billion (USD11.0 billion), then Germany (RM9.0 billion), Singapore (RM6.0 billion), Brunei (RM5.1 billion) and the Netherlands (RM4.1 billion).
Services, manufacturing and the primary sector
Services accounted for RM78.0 billion (USD17.7 billion) from 1,351 projects, up 48.8 per cent on the RM52.4 billion (USD12.6 billion) of the same period in 2021. MIDA said the result exceeded expectations. Foreign investors put in RM50.4 billion (USD11.5 billion) of it, while RM27.6 billion (USD6.3 billion) came from domestic sources.
Information and communications was the largest sub-sector at RM53.7 billion (USD12.2 billion). Three data centre projects were worth RM51.1 billion (USD11.6 billion) of that.
Manufacturing approvals came to RM43.1 billion (USD9.8 billion), 34.9 per cent of the total, compared with RM75.8 billion (USD18.3 billion) in the first half of 2021, a period MIDA said was lifted by one megaproject. Expansion and diversification projects were worth RM26.0 billion (USD5.9 billion), up 31.9 per cent, and new projects made up RM17.1 billion (USD3.9 billion). The primary sector took RM2.2 billion (USD0.5 billion), down from RM6.5 billion (USD1.6 billion) a year earlier.
Five states drew RM103.5 billion (USD23.5 billion), or 83.9 per cent of the total: Johor, Selangor, Sabah, Kedah and Penang.
Government plans
Senior Minister and International Trade and Industry Minister Datuk Seri Mohamed Azmin Ali said services are the key growth driver for the economy and the largest contributor to approved investments for the half-year.
“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,” he said.
A Digital Investment Office, run jointly by MIDA and MDEC, was set up to coordinate and streamline digital investments. It supports the government’s goal of drawing RM70.0 billion (USD15.6 billion) in digital investment 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
- Malaysia Investor Confidence Ticks UpRM123.3 billion of approved investments recorded for January-June 2022
Sources
- Malaysia Attracted RM123.3 Billion (USD28.0 Billion) of Approved…
- Malaysia attracted RM123.3b approved investments in 1H22; led by…
