MALAYSIA can expect a modest increase in investments in the manufacturing sector this year, bolstered by investments in the electrical and electronics (E&E) sector.
International Trade and Industry Minister Datuk Seri Mustapa Mohamed said in the first nine months of this year, approved investments by the Malaysian Investment Development Authority at RM63.5 billion exceeded that of RM52.1 billion last year.
The latest data point towards total investments exceeding RM70 billion for the whole year.
“The sector has set a new record as domestic investors continue to increase their share while foreign direct investments (FDIs) continue to look at Malaysia as a favourite destination,” he said at a briefing on the January-September investments, here, yesterday.
According to Mustapa, petroleum products (including petrochemicals) took a lion’s share with RM15.71 billion, followed by chemical and chemical products (RM10.42 billion), basic metal products (RM9.53 billion) and E&E (RM8.94 billion).
Of the total 619 projects, Johor was top with RM20.13 billion, while Sarawak was second with RM10 billion, followed by Penang which bagged RM5.99 billion.
In terms of FDI, he noted that more than half were sourced from Asian countries, led by Japan, Singapore and China, while another 26 per cent were from the Europe Union and the United States.
Malaysia recorded RM172.3 billion of investments in the first nine months of the year, giving rise to 144,400 jobs across manufacturing, services and primary sectors.
The services sector was the largest contributor in terms of investments, which accounted for 83.4 per cent of the total number of projects and amount of investments approved.
“Services projects approved within this period are expected to generate significant job opportunities along a continuum of skill sets. Malaysians will benefit from these jobs, ranging from highly-skilled occupations to skilled craftsmen.
“Going forward, a strong flow of investments in the pipeline are set to further strengthen from an efficiency-driven economy to an innovation-driven economy,” Mustapa added.
“As at September, we have 245 proposals for manufacturing projects and 171 proposals for services projects.”
The estimated total investments of these projects are almost RM28 billion, mainly in chemicals and chemical products, E&E, healthcare, education, hospitality as well as manufacturing-related services.
“The encouraging number of investments in the pipeline is a good indication that Malaysia is on track to achieving its target.”
