RM200b investments expected to be approved this year

KUALA LUMPUR: Malaysia is eyeing RM200 billion in approved investments this year in the manufacturing, services and primary sectors, says Malaysian Investment Development Authority (Mida).

Chief executive officer Datuk Azman Mahmud said RM80 billion worth of investments had either been achieved or in the pipeline. They include the setting up of 12 principle hubs.

“A total of RM51.1 billion of these investments will come from the manufacturing sector, such as basic metal, petroleum, rubber products and machinery manufacturing, and RM18.4 billion from the services sector, such as global establishments, hotel and tourism and support services.

“The RM80 billion will come from local and foreign investments from Singapore, the United States, China, Indonesia, Hong Kong, the Netherlands and Switzerland, and the setting up of 12 principle hubs nationwide,” Azman said after the release of the Malaysia’s Investment Performance Report 2017 yesterday.

Earlier, International Trade and Industry Minister Datuk Seri Mustapa Mohamed said global foreign direct investments were expected to bounce back to almost US$1.8 trillion (RM3.9 trillion).

“Stronger economic growth in major economies, gradual recovery in commodity prices and improved profits, and prospects in various sectors could boost business confidence and multinational companies’ appetite to invest.

“Malaysia can benefit from its economic strengths, such as stable and supportive business environment, strong fundamentals, talented workforce, strategic location and an effective government,” he said.

Last year, petroleum products, including petrochemicals and natural gas, recorded the highest total approved investments at RM26 billion, up RM6.5 billion from the previous year.

“This was contributed by three projects — Petronas Refinery & Petrochemical Corp’s project in Johor, Petronas Floating MNG 1 in Sarawak and a natural gas project by the Malaysian Refining Co in Melaka.”

Azman said the upstream oil and gas sector might see an uptrend following a pick-up in exploration and production activities due to improving crude oil prices.