Malaysia to leverage on improving trend of private investments

KUALA LUMPUR: Malaysia is set to leverage on the improving trend of private investments, bolstered by positive sentiments arising from the government’s supportive policies and clear economic direction, according to the Malaysian Investment Development Authority (MIDA).

In the March 2019 issue of its e- newsletter, the investment authority said this was reflected in the total approved investments in the manufacturing, services and primary sectors which increased to RM201.7 billion in 2018 from RM200.6 billion in the preceding year.

“Foreign investors continue to capitalise on Malaysian ecosystems and its regional synergies as foreign direct investment (FDI) increased 48 per cent to RM80.5 billion in 2018 from RM54.4 billion in 2017.

“China, Indonesia, the Netherlands, Japan and the United States were the largest contributors to Malaysia’s manufacturing sector last year, as they jointly accounted for RM44.3 billion or 76.4 per cent of approved foreign investments,” it said.

MIDA said the services sector continued to be the cornerstone of Malaysia’s economic growth last year as the largest contributor to total approved investments with RM16.5 billion in FDI and RM86.9 billion in direct domestic investments.

“The global establishments and end- to- end supply chain management services are key components to the nation’s economy and these services create trade efficiency and competitive advantages for other Malaysian industries.

“Given that the services sector is dominated by domestic industry players, the government has introduced various initiatives to provide more business opportunities for Malaysian services providers,” it said.

MIDA added the initiatives included the introduction of a mechanism to encourage better linkages with local service providers in the areas of architecture, engineering, transportation, banking, insurance, legal, and information and communications technology (ICT). — Bernama