Thursday, February 28, 2013

Malaysia Attracts More FDI Investments

Malaysia attracted RM162.4 billion worth of investments last year, its highest on record in six years.

The record level, against a backdrop of subdued global investment flows, exceeded the official target by 9.1 per cent.

Much of 2012' investments were in new and emerging technologies, particularly within the aerospace, semiconductor, solar, machinery and equipment, biotechnology, petroleum and petrochemical products and medical devices as well as the oil and gas sectors.

The 5.1 per cent increase, through 6,442 projects, could generate 182,841 jobs, mostly in the services industry, said International Trade and Industry Minister Datuk Seri Mustapa Mohamed yesterday.

Domestic investments contributed the most in the manufacturing, services and primary sectors with RM127.6 billion (78 per cent).

Selangor received the largest amount in approved investments with RM23.4 billion, followed by Sabah (RM11.6 billion), Kuala Lumpur (RM9.7 billion), Sarawak (RM9.4 billion) and Johor (RM7.4 billion).

The Malaysian Investment Development Authority (Mida) said in 2012, a total of 804 manufacturing projects were approved involving investments of RM41 billion compared with RM56.1 billion for 846 manufacturing projects in 2011.

Foreign investments amounted to RM20.8 billion and accounted for 50.7 per cent of the total investments.

Japan was the major source with RM2.8 billion, Saudi Arabia (RM2.6 billion), Singapore (RM2.2 billion), China (RM2 billion) and South Korea (RM1.6 billion).

New or greenfield investments through 473 projects totalled RM26.8 billion.

Some RM21.2 billion of the manufacturing investments went into the economic corridors located in the north, south and east regions of Peninsular Malaysia and in Sabah and Sarawak.

The Sabah Development Corridor recorded the highest with RM5 billion, the East Coast Economic Region RM4.6 billion, Sarawak Corridor of Renewable Energy RM4.3 billion, Iskandar Malaysia RM4.2 billion and Northern Corridor Economic Region RM3.1 billion.

The services sector contributed 72 per cent of approved investments last year, with real estate the leading contributor (RM58.8 billion) followed by utility (RM12.6 billion), hotel and tourism (RM8.9 billion), transport (RM6.8 billion) and telecommunications (RM6.6 billion).

The primary sector, which covers agriculture, mining and plantations and commodities, attracted investments worth RM3.8 billion.

FDIs seen exceeding US$12b this year.

KUALA LUMPUR: Foreign direct investments (FDIs) will likely exceed US$12 billion (RM37.2 billion) this year, spurred by improvements in the electrical and electronics (E&E) sector on the back of a recovery in the advanced economies said International Trade and Industry Minis-ter Datuk Seri Mustapa Mohamed.

E&E has traditionally been the main investment driver attracting foreign interest in the manufacturing sector. However, investments plunged from RM16 billion in 2011 to RM4 billion last year.

"It is partly due to the global (down) cycle of the sector plus Malaysia now no longer attracts the labour-intensive type of E&E investments ...we are no longer competitive here as we are moving up the value chain," he said at a briefing by the Malaysian Investment Development Authority (Mida) yesterday.

A total of 112 E&E projects with investments of RM3.9 billion were approved last year, most of which came from foreign investors (82.1 per cent).

The sharp rise in investment in high value-added sectors such as medical devices, biotechnology and services sector are offsetting the gradual decline of investments into labour-intensive industries.

"Expect more interest from China and Singapore this year," he said, following the interest both countries showed in the growth corridors.

The impending general election, he said, does not have an impact on major investment decisions as reflected in the case of Medini, the waterfront project in JB and also the Malaysia-China Kuantan Industrial Park (MCKIP).

Mustapa, who will be attending an investment forum in Singapore, explained that the neighbouring country, faced with cost pressures, is keen to expand in the manufacturing and services sectors.

On the outflow of investments, the trade minister admitted there has been a wide gap with the inflow of investments in recent years but that reflects the accelerating interest of Malaysian companies to grow their businesses abroad.

"Direct Investment Abroad has exceeded net FDIs but that is not total-ly unwelcome. Investments abroad by Petronas, Khazanah Nasional and our banks have earned dividends."


1 comment:

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