Post by : Rameen Ariff

Malaysia has reported a strong investment performance in the first half of 2025. The Malaysian Investment Development Authority (MIDA) announced that the country secured RM190.3 billion in approved investments, showing an 18.7% rise compared to the same period in 2024.

Out of this total, foreign investments made up RM106.8 billion, which is 56.1% of the overall approved investments. The remaining amount came from domestic sources.

Investments Create New Jobs

MIDA said the approved investments are linked to 3,011 projects across manufacturing, services, and primary industries. These projects are expected to generate 89,294 new jobs, a major boost for the Malaysian workforce.

Surge in Foreign Investments

Foreign investments grew by 43.5% year-on-year, reflecting strong confidence in Malaysia.

• Singapore was the top source with RM43.4 billion.

• China came second with RM23.4 billion.

• The United States contributed RM10.4 billion.

• The British Virgin Islands brought in RM6.6 billion.

• Italy added RM3.3 billion.

This spread shows that Malaysia continues to attract global investors from both Asia and the West.

Sector-Wise Breakdown

• Services Sector: Accounted for RM118.6 billion of the total, a 25.6% increase compared to last year. Both domestic (RM66.6 billion) and foreign (RM52 billion) investments contributed strongly.

• Manufacturing Sector: Recorded RM68.4 billion, up 13.8% year-on-year. Of this, 78% came from foreign investors (RM53.3 billion), while 22% came from local investors (RM15.1 billion).

• Primary Sector: Received RM3.3 billion in 17 projects, mainly in mining. Domestic investors contributed RM1.8 billion.

States Leading in Investments

Among all Malaysian states, Johor topped the list with RM56 billion in approved investments. This growth is linked to projects such as the Johor–Singapore Special Economic Zone, which strengthens the state as a hub for trade and manufacturing.

Other top states include:

• Selangor – RM34.7 billion

• Kuala Lumpur – RM30.1 billion

• Pulau Pinang – RM18.9 billion

• Sabah – RM11.4 billion

Government’s Outlook

Senator Tengku Datuk Seri Utama Zafrul Aziz, Malaysia’s Minister of Investment, Trade and Industry, said that the results show Malaysia’s strong fundamentals and global appeal as a regional hub.

MIDA also revealed that there are 385 potential projects worth RM22.5 billion currently under review. Out of these, 290 projects are in the services sector (RM15.7 billion), while 95 projects are in manufacturing (RM6.8 billion).

In addition, Malaysia is in talks for another RM103.8 billion in high-impact investment leads, which could further boost the economy.

Malaysia’s ability to attract nearly RM200 billion in investments during just half a year is a sign of economic strength and investor trust. The balance between foreign and domestic investments, along with the spread across multiple states, shows that growth is not limited to one area but is shared nationwide.

With Singapore, China, and the U.S. among the top investors, Malaysia is clearly positioned as a strategic hub in ASEAN, offering opportunities in both services and manufacturing. The creation of almost 90,000 new jobs highlights the direct benefits to ordinary Malaysians.

Going forward, the challenge will be to ensure these investments are sustainable, environmentally friendly, and inclusive, so that long-term growth benefits the whole nation.