Zafrul: Malaysia attracted RM264.6b approved investments in 2022, second largest ever recorded

RM264.6 billion in approved investments

Malaysia's approved investments totalled RM264.6 billion in 2022, the second-largest figure on record after 2021, International Trade and Industry Minister Tengku Datuk Seri Zafrul Abdul Aziz said at Mida's media conference on the year's investment performance. Services led the pie at RM154 billion (58.2%), followed by manufacturing at RM84.3 billion (31.9%) and the primary sector at RM26.3 billion (9.9%).

"There were two large one-off investments that happened in 2021 from Intel and China's Risen Energy Co Ltd," — Tengku Datuk Seri Zafrul Abdul Aziz

Foreign direct investment accounted for 61.7% (RM163.3 billion) of the total, with domestic direct investment making up the remaining 38.3% (RM101.3 billion). Zafrul said the approved investments are expected to generate 140,370 jobs.

Where the money came from

China led foreign investment sources, followed by the United States, the Netherlands, Singapore and Japan:

• China: RM55.4 billion
• United States: RM29.2 billion
• Netherlands: RM20.4 billion
• Singapore: RM13.5 billion
• Japan: RM11.4 billion

By state, Johor drew the largest share, followed by Selangor, Sarawak, Kuala Lumpur and Penang:

• Johor: RM70.6 billion
• Selangor: RM60.1 billion
• Sarawak: RM28.2 billion
• Kuala Lumpur: RM25.0 billion
• Penang: RM16.3 billion

Zafrul said this distribution needs to improve further, pointing to the country's renewed focus on effective economic policy, a favourable investment climate, political stability, and better-coordinated promotion efforts across federal and state agencies.

Policy direction and 2023 outlook

Zafrul said Malaysia's New Investment Policy reforms align with the 12th Malaysia Plan's goals of strengthening security, promoting inclusive well-being, and advancing sustainability. He also highlighted Malaysia's ambitions to become Asean's digital hub, citing its ICT infrastructure, intellectual property protections, and talent pool, alongside Budget 2023's "Academy in Factory" initiative under Miti, which aims to secure a steady pipeline of skilled labour for industry.

On the outlook for 2023, Zafrul acknowledged that slower global growth could weigh on investment decisions, since investment — unlike trade — depends on long-term planning rather than immediate demand, making a country's fundamentals the deciding factor. Still, he expects Malaysia's economy to stay resilient despite inflationary pressure, uncertainty and climate-related challenges: the World Bank has forecast growth of 4.0% and the IMF 4.4%, broadly in line with the government's own projection of around 4.5%. He pointed to Malaysia's continued participation in multilateral trade pacts such as RCEP and the CPTPP as a way to boost investor confidence and, in turn, benefit Malaysian businesses and livelihoods.

Source: The Edge Markets