‘Manufacturing investments set to recover in next few months’

KUALA LUMPUR: Investments in manufacturing sector is expected recover in the next few months due to Malaysia’s established industrial ecosystems.

International Trade and Industry Minister Datuk Seri Mustapa Mohamed said the country’s broad-based economic structure continued to appeal to both domestic and foreign investors.

“For example, as at last month, Malaysian Investment Development Authority (Mida) had 341 projects in the pipeline with investments worth RM50.9 billion for the manufacturing and services sectors,” he said in a statement yesterday.

Mustapa said if a large number of those projects were implemented, they could provide more than 18,000 jobs for the country.

According to Mida, Malaysia’s approved investments in the first half of the year declined 28.2 per cent to RM65.4 billion, compared with RM91.2 billion in the same period a year ago.

The approved investments involved 2,294 projects in the services, manufacturing and primary sectors, among others.

They were expected to create 61,930 employment opportunities.

Mida said the services sector recorded a 41 per cent drop in the number of approved investment, due to the slowing down in the property market.

“In the global establishment sector, there were no principal hub projects approved from January to June as the policy review for principal hub was being undertaken.

“However, based on projects in the pipeline that are currently being negotiated by Mida, we foresee that there will be a number of approvals for principal hub projects with sizeable investments this year,” he added. Ayisy Yusof