KUALA LUMPUR: Malaysia is expected to approve more than RM200 billion in new investments this year, according to the Malaysian Investment Development Authority (Mida), signalling a recovery to pre-pandemic levels.
Going forward, the country expects to see the same or even higher levels of new investments every year, according to CEO Arham Abdul Rahman.
Typically, domestic sources account for 60% of new direct investments compared with 40% for foreign direct investments approved each year.
Arham said investments in the semiconductor as well as electrical and electronics (E&E) sectors would continue to make up the lion’s share of the total investment this year.
“The disruptions in the E&E and semiconductor global supply chains during the pandemic saw many chips and semiconductors being utilised in mobile phones and PC production, (causing a shortage) for the automotive industry.
“Now the demand for chips and semiconductors in the automotive industry is on an uptrend,” Arham told a press conference after a panel discussion titled “Shifting the Paradigm: Enhancing DDI for Sustainable Economic Growth” here today.
He said that in the first half of 2022, Mida approved RM123.3 billion in total investment, largely in the services sectors, including for the data centre projects in Johor.
He declined to reveal the latest figure for approved investments but signalled that the trend is rising in tandem with growing interest in Malaysia as a preferred destination for investment among domestic and foreign investors.
In 2021, Mida approved a record RM309.4 billion (US$74.2 billion) in new investments in the manufacturing, services and primary sectors despite the unique global calamities, thanks to several big ticket projects secured, especially in the E&E and semiconductor industry, including from Intel and Osram.
Source: https://www.freemalaysiatoday.com/category/business/2022/11/08/new-investments-back-to-pre-pandemic-levels/