Investment Opportunities In Malaysia

The country continues to be an attractive investment destination

Malaysia's geographical location and access to a vast market of over 600 million people make it a great business place. Since its borders were opened at the start of the year, Malaysia has seen a surge of progress and now presents an opportune moment to capitalise on the potential that awaits and remain resolute in anticipation of a brighter future.

Given its attractive investment environment, Malaysia has become a top choice for global and regional businesses. For the period of January to September 2022, the country approved $41.7 billion worth of approved investments in services ($24.4 billion), manufacturing ($14 billion) and primary sectors ($3.3 billion) an increase of 2.5 per cent as compared to the same period in 2021. Foreign Direct Investments (FDI) once again proved to be the major driver of total approved investments in the first nine months of the year, with a remarkable $28.1 billion being invested or 67.5 per cent, which is a 15 per cent increase from the same period last year. Domestic Direct Investment (DDI) accounted for the remaining 32.5 per cent or $13.6 billion.

The approved investments over this period are projected to create 98,414 new jobs in our nation, offering a much-needed boost to the post-pandemic economic recovery The Malaysian domestic industry has seen great benefit from the presence of global companies that have extended their operations to the country, as Malaysian businesses strive to provide high-quality products and services. This has been a major boon for the economy, allowing for greater development and growth.

Datuk Wira Arham Abdul Rahman, Chief Executive Officer at MIDA, said: "Malaysia is a thriving business hub with a solid business ecosystem that offers the perfect environment for investors. It is well-equipped with various incentives and facilities to support and promote business growth. Malaysia is poised to become the next major economic hub."

Malaysia has been identified as the third most attractive Global Business Services location by the 2021 Kearney Global Services Location Index. However, it is taking strides to achieve higher quality, impactful, and capital-intensive projects that will drive economic growth. The services sector has been the predominant contributor to approved investments during the first nine months of this year, showing that the nation is on the right path towards success.

Malaysia's Strength in the Manufacturing Sector Continues

Malaysia's booming electrical and electronic industry produced an impressive$4.9 billion for the period January to September 2022, demonstrating Malaysia's remarkable capabilities in this sector. The transport equipment followed closely with $1.6 billion in revenue, while the production of petroleum products (including petrochemicals) brought in $1.2 billion.

The evidence presented by these investment opportunities demonstrates that MIDA is still eager to accomplish more. As of November 2022, there are 285 projects in MIDA's investment pipeline with a combined proposed investment of $4.4 billion. MIDA oversees 247 projects from the services sector with a collective value of $3 billion and 38 projects from the manufacturing sector with an estimated worth of $1.4 billion.

— ali@khaleejtimes.com