Mida Records Malaysia’s Approved Investments That Worth RM37.4 Billion in the First Three Months of 2020
According to the Malaysian Investment Development Authority (MIDA), Malaysia’s approved investments recorded a whopping RM37.4 billion in the first three months of 2020. The approved investments were contributed by the manufacturing, service and the primary sector, totalling up to a total of 892 projects. It is to note that the RM26.3 billion comes from domestic investments while remaining RM 11.1 billion is from foreign sources.
The largest contributor Malaysia approved investments is none other than the manufacturing sector. The manufacturing industry dominated the nation’s approved investments, with 67.5% of the total approved investments for the first quarter (1Q) of 2020. MIDA approved 214 manufacture projects in 2020’s first three months, compared to the previous year where 216 manufacture projects were approved during the first quarter; this year’s numbers are considerably well done, given the sudden pandemic outbreak paralyzing all physical projects.
Domestic investments in the manufacturing sector are RM14.6 billion, whereas foreign investments total up to RM10.6 billion. Switzerland brought the biggest influx, with RM2.7 billion worth of investments, followed by Singapore with RM2.1 billion, the United States of America (USA) with RM2.0 billion, China with RM1.4 billion and Japan with RM0.9 billion; these five powerhouses pooled and made the top sources of FDI. This massive sector presents good news for Malaysians; more than 15 688 new jobs will be available in many different disciplines such as managerial positions, artisans, technicians, engineers, IT experts and more.
After manufacturing, the services sector comes in second place with RM11.9 billion or 31.8% of the total approved investments for 1Q of 2020. This sector involves 669 service projects. In the services sector, domestic investments amount RM11.6 billion, whereas foreign investments are RM 0.3 billion. The investments will create more than 3400 new jobs to Malaysia’s economy in various sectors as well.
However, the main sub-sectors for services experienced a decline, excluding support services, financial services and global establishments. The total of RM11.9 billion of approved investments was contributed by the real estate support services, utilities, hotel and tourism and financial services, which represented 98.9% of the approved investments.
Finally, we have the primary sector. This sector is accountable for 0.3% of the total investments, with RM144.4 million from foreign investors and RM136.9 million are of domestic investors. The primary industry encompasses mining, plantation and commodities, and agriculture sub-sectors.
What Does This Mean for Malaysia?
Being the prime agency for the promotion of manufacturing and service sectors, MIDA has devised plans to manoeuvre the COVID-19 outbreak by planning multiple improvised approaches to continue engaging with potential investors since early March of 2020. These approaches include discussions with existing and new investors with investment ecosystems enablers such as financial institutions and business chambers.
Although the country acknowledges that they might not be able to reach pre-COVID-19 investments, they are improvising business and investment plans to follow the suit of new norms. Plans are already in motion to increase promotional efforts to not only retain but attract investors to jumpstart the economy.