Malaysia achieved a historic milestone in 2024 with USD 80 billion (MYR 378.5 billion) in approved investments, marking a 14.9% year-on-year increase and signaling strong investor confidence. The government projects a 4.7% GDP growth in 2025, driven by domestic consumption, private investment, and exports.
These investments are expected to generate over 207,000 jobs across 6,700 projects spanning the manufacturing, services, and primary sectors. Domestic investors contributed 55% (USD 44 billion), while foreign direct investment (FDI) accounted for 45% (USD 36 billion), led by the U.S., Germany, China, Singapore, and Hong Kong. The state of Selangor attracted the highest investment at USD 21.3 billion, followed by Kuala Lumpur, Johor, Kedah, and Penang. The services sector dominated with USD 53.5 billion in investments, accounting for 66.8% of the total, followed by the manufacturing sector, which attracted USD 25.5 billion. Meanwhile, the primary sector secured USD 1.1 billion, representing 1.4% of overall investments.
In the digital sector, the Digital Investment Office exceeded its 2025 target by securing USD 28.3 billion in investments. Meanwhile, Malaysia’s renewable energy industry is gaining traction, driven by Johor’s USD 53 billion solar farm, which supports the nation’s green energy transition. The electrical and electronics (E&E) sector also saw strong growth, attracting USD 18 billion, with 86% directed toward semiconductor projects—further advancing Malaysia’s USD 106 billion National Semiconductor Strategy.
Looking ahead, Malaysia is prioritizing regional trade and investment growth, including through the ASEAN-Nomura Investment Forum Asia (NIFA), which aims to add USD 450 billion to the digital economy by 2030. Currently, 1,049 high-potential projects valued at USD 12.4 billion are under review, while another USD 13.4 billion is in active negotiations, further cementing Malaysia’s position as a leading investment hub in Southeast Asia.
(Sources: The Star; The Edge Malaysia)
