Ap­proved di­rect in­vest­ments down 29.8% in H1 but for­eign in­flow still strong

The Sun (Malaysia) - - SPEAK UP -

PE­TAL­ING JAYA: Malaysia’s ap­proved di­rect in­vest­ments in ser­vices, man­u­fac­tur­ing and pri­mary sec­tors fell RM37.5 bil­lion or 29.8% to RM88.4 bil­lion in the first half of 2016 (H1 2016), against RM125.9 bil­lion in the same pe­riod last year.

The Min­istry In­ter­na­tional Trade and In­dus­try (Miti) and the Malaysian In­vest­ment De­vel­op­ment Author­ity (Mida) said in a joint state­ment yes­ter­day that the bet­ter in­vest­ment per­for­mance in H1 2015 was mainly due to two big petro­chem­i­cal projects ap­proved in the man­u­fac­tur­ing sec­tor, namely the Pengerang project in Jo­hor and the LNG9 project in Sarawak.

A to­tal of 2,499 projects were ap­proved in H1 2016 and they are ex­pected to gen­er­ate more than 76,000 job op­por­tu­ni­ties.

None­the­less, min­is­ter Datuk Seri Mustapa Mo­hamed stressed that Malaysia con­tin­ues to at­tract for­eign di­rect in­vest­ments (FDIs), with a to­tal of RM28.2 bil­lion ap­proved in H1 2016.

“Our ap­proved for­eign in­vest­ments for H1 2016 have al­ready reached 78.2% of the to­tal for­eign in­vest­ments ap­proved for the whole of last year,” he noted.

Mustapa high­lighted that there was con­tin­ued in­ter­est by for­eign in­vestors to in­vest in qual­ity projects in new growth ar­eas and emerg­ing tech­nolo­gies de­spite the cur­rent eco­nomic sce­nario.

“With the strong pres­ence of FDI in the coun­try, we trust that our sup­ply chain ecosys­tem and re­lated ser­vices in­dus­try will con­tinue to grow. To com­ple­ment FDI, Miti/Mida will con­tinue to as­sist Malaysian com­pa­nies to strengthen their com­pe­ten­cies and bol­ster their com­pet­i­tive edge,” said Mustapa.

The ser­vices sec­tor con­tin­ued to ac­count for the largest share of to­tal in­vest­ments for the coun­try, con­tribut­ing 76.3% or RM67.5 bil­lion, fol­lowed by the man­u­fac­tur­ing sec­tor with in­vest­ments of RM19.6 bil­lion or 22.2%, while the pri­mary sec­tor con­trib­uted the re­main­ing ap­proved in­vest­ments of RM1.3 bil­lion or 1.5%.

Mustapa said as at Au­gust 2016, Mida has 264 projects in the pipe­line with in­vest­ments worth RM30.8 bil­lion for the man­u­fac­tur­ing and ser­vices sec­tors. These projects are mainly in chem­i­cal and chem­i­cal prod­ucts, ma­chin­ery and metal, trans­porta­tion tech­nol­ogy, global es­tab­lish­ments and hos­pi­tal­ity.

“These projects would po­ten­tially pro­vide over 20,000 more jobs for Malaysians. We ex­pect to process these in­vest­ment pro­pos­als by the end of this year,” he added.

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