RM80.6 Billion Approved: Investment, and It’s Rise in Malaysia 2021
Investment is all about putting your money in the right place and time for maximum results. This undoubtedly requires keen attention to the development of the global economic climate. One may also need to have the ability to predict if a particular investment will pan out as intended. These are the keys to ensuring the soundness of an investment plan.
Malaysia may just be the ideal investment hub in 2021 after it recorded RM80.6 billion in approved investments. Sectors that are expected to bloom include those in manufacturing, services, and the primary sectors. This exponential bloom can potentially stimulate the growth of existing industries and introduce more job opportunities. Investment in Malaysia is highly encouraged for both local and foreign investors.
The Senior Minister and Minister of International Trade and Industry (MITI), had made several encouraging remarks. Despite the country’s struggle with the COVID-19 pandemic, Malaysia remains a strategic gateway and primary investment destination. Malaysia has pro-business, prudent, and pragmatic investment policies which raise its competitiveness in the global economy. There is much potential to be explored, and this article will provide a glimpse into possibilities.
Sectors of Interest
The government is expecting several sectors to flourish this year. MITI forecasts that this year’s investment projections are expected to surpass that of the previous year. This includes a combination of Direct Investment (DDI) and Foreign Direct Investments (FDI). The following paragraphs will elaborate.
The primary sectors consist of economies based on natural resources and agriculture. Malaysia is rich in various commodities such as rice, rubber, palm, oil, and timber. It currently makes up RM6.2 billion in investment value.
Manufacturing in 2021 recorded RM58.8 billion compared to RM25.9 billion in the previous year. This sector has about 246 projects at hand and is the largest in overall constituents of investment value. Malaysia manufactures and exports electronics, semiconductor devices, petroleum, food, beverages, and more.
The services sector makes up RM15.6 billion. It consists of banking, finances, telecommunications, tourism, and more. There is currently an emphasis on information technology and demand for telecommunication services.
Supporting Factors
The Malaysian government is highly encouraging of both DDI and FDI. Given that, there are grants, funds, and tax incentives. Malaysia has attracted foreign investment policies with an emphasis on growth and sustainability. A Standard Chartered Group study concluded: Malaysia is the second most favorable country for foreign investment in South-East Asia.
Perhaps one of the most enticing offers to encourage foreign investment in Malaysia is tax exemptions. Qualifying companies can enjoy tax exemption rates that can last up to ten years for new and existing companies. Other benefits include pioneer status, investment tax allowance, reinvestment allowance, and allowance related to maintenance.
Where to start?
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