Malaysia: A Strategic Global Investment Hub

With more than 50 years of track record in building the nation, MIDA works hand-in-hand with investors to unlock investment opportunities and facilitate a seamless investment journey in Malaysia

Foreign direct investment (FDI) provide numerous economic benefits to host countries. FDI can increase the availability of capital, create employment opportunities, improve infrastructure, boost exports, and introduce advanced technology and management practices, to name a few. These elements can contribute to developing and modernising a nation’s economy. Many governments have implemented policies to ensure that FDI inflows are better regulated and managed.

Malaysia, located strategically at the heart of ASEAN, presents a compelling investment opportunity due to its favourable macroeconomic conditions and diverse asset classes. Over the last half-century, FDI has driven Malaysia’s economic growth. This inflow of capital has fueled the nation’s export-oriented growth strategy and has significantly contributed to the country’s ongoing socio-economic transformation.

Malaysia has received several prestigious awards, recognising its economic competitiveness by the Milken Institute’s citation (2022) as the ‘Number 1 destination for FDI’ in Southeast Asia. For the first nine months of 2022, we achieved $41.7 billion in approved investments. Malaysia was also ranked as the Top Country in Emerging Southeast Asia for Foreign Investment Global Opportunity Index by Bloomberg (2022).

Over the last two decades, Malaysia has made great strides in transitioning from a mill space focused solely on mass production to a knowledge partner and regional base for global players in electrical and electronics (E&E), medical, automotive, aerospace, and chemicals. This shift has enabled Malaysia to become a more competitive player in the global economy, positioning itself for future success.

We recently had the pleasure of facilitating new investments for some of the world’s leading innovators like Infineon Technologies, Intel, AT&S, Risen Solar, Smith+Nephew, Porsche, Mercedes Benz, SK Nexilis, Nexperia and Dexcom.

Gaining Insights

The Malaysian government has taken steps to attract more FDI, including introducing a wide range of policies and incentives to make the country more attractive to foreign investors. Being the Malaysian government’s principal agency to drive investments into the country, the Malaysian Investment Development Authority (MIDA) has established 21 global offices to acquire essential information and insights on potential industries and sectors Malaysia could benefit from. This is the first step in discovering new industries, which will further explore Malaysia’s potential.

As aptly outlined in Malaysia’s forward-looking national development agenda, Shared Prosperity Vision 2030 and the Twelfth Malaysia Plan (12MP), investments provide the impetus towards achieving robust and sustainable growth of the nation. The government has formulated the National Investment Aspirations (NIA) which serve as a roadmap for the New Investment Policy (NIP) whose overarching objective is to enhance Domestic Direct Investment as well as FDI. The NIP outlined structural growth needs for Malaysia to remain competitive in the global market as an investment destination.

The NIA manifest the government’s active, agile and forward-looking measures to secure a robust investment ecosystem that would propel exponential and inclusive growth.

Through the development of the five sectors, identified as economic propellers, namely E&E, pharmaceuticals, digital economy, aerospace, and chemicals, we would be able to accelerate the production volume of sophisticated products and services and research and development (R&D) activities to innovate our offerings, thus increasing our export output and economic diversity.

As we face new challenges, we must focus on what we can uniquely contribute to the development of Malaysia. We aim to create a sustainable investment ecosystem with the right landscape, technology, talent, and growth strategies to position Malaysia as a competitive investment destination for global players. Our efforts are focused on developing new clusters and industry capacities that are aligned with global changes and demands to maintain and strengthen our position as a regional leader.

Visit us: https://www.mida.gov.my/

Malaysia is fully committed to environmental, social and governance (ESG) principles. In doing business in Malaysia, we aim to lead our investors and local industry players to adopt and implement ESG proactively. Bound by our zero-carbon commitment, our roles as investment promoters and economic frontliners include targeting investors who can contribute to a better world.

MIDA, with over five decades of experience and adaptability, understands the needs of investors and fosters collaborations with relevant and supportive partners in developing an industrial ecosystem and reliable supply chains to cater to business requirements. Supporting networks like licensing, financing, local suppliers, talents, state government support, and more are carefully cultivated and mobilised for our existing and potential investors, as happy investors mean growing investment and more job opportunities for Malaysians. Our access and industrial leadership within the region, growth support, homegrown talent, and the digital landscape assures investors that our support extends beyond approving investments

Our unique propositions to the global players extend beyond our geographical and economic strengths. We are interested in the growth and expansion of our investors. The UAE has been a significant trading partner for Malaysia. We recently extended an invitation to the UAE to explore potential investment opportunities, particularly in high tech manufacturing sector, digital investment projects and our food security projects.

Increasing the participation of local companies in global supply chains will help strengthen our local ecosystem for each industry, among the key ingredient to attract quality FDI into Malaysia. However, in our quest for continuing high growth, we are also taking steps to ensure that ESG considerations are not neglected in line with our philosophy of sustainable development, as envisaged in United Nations’ SDG Goals. A holistic investment ecosystem creates the ability to regenerate and sustain our economic diversity in the long term.

Businesses and potential investors from the MENA region are welcome to contact MIDA Dubai Office to enquire on investment opportunities in Malaysia. Please send your enquiries to: dubai@mida.gov.my or call +971 4 4343696

Datuk Wira Arham Abdul Rahman is the CEO of the Malaysian Investment Development Authority (MIDA), a Government-leading investment promotion agency. Prior to his appointment as CEO in 2021, Datuk Wira Arham was the economic affairs officer, specialising in capturing FDI investment for 32 years since 1989. He is dedicated to exploring and advancing Malaysia’s competitive advantages as the ideal investment destination in the region. Under his leadership and strategic direction, MIDA has been successful in consistently attracting and facilitating FDI into Malaysia. He firmly believes Malaysia delivers a competitive edge for global investors.