KUALA LUMPUR, Feb 9 (NNN-Bernama) — Malaysia continues to be the investment destination for high-value manufacturing and global services in Asia, the Malaysian Investment Development Authority (MIDA) said.
The country remains an attractive investment destination with a favourable environment including the availability of excellent infrastructure, telecommunication services, financial and banking services, supporting industries, skills and trainable workforce, as well market opportunities offered through the 16 Free Trade Agreements that it has signed.
MIDA has refuted a recent report by a Singapore daily regarding foreign investors fleeing Malaysia, saying it is incorrect.
“The piece falsely indicates that the United Nations Commission on Trade and Development (UNCTAD) report confirmed what has been spoken of anecdotally,” it said in a statement Monday.
MIDA stated that it has identified 240 high-profile foreign investment projects including Fortune 500 companies in the manufacturing and services sectors, with a combined potential investment value of RM81.9 billion (US$20.14 billion, US$1 = RM4.06).
“Presently, MIDA has also received RM47.7 billion worth of potential investments into the country. These projects, once approved, are expected to be implemented within the year 2021 to 2022,” it said.
Citing the Department of Statistics Malaysia (DoSM), it said the total Gross Foreign Direct Investment (FDI) inflow to the country for the period of January to September 2020 was valued at RM108.2 billion compared with RM102.3 billion in the same period in 2019, an increase of 5.8 per cent.
“This is a considerable achievement given the Movement Control Order (MCO) and Recovery MCO in the second and third quarter of last year, respectively.
“The Gross FDI inflow is also reflective of the high levels of FDI projects approved and implemented in the economy including manufacturing, services, and primary sectors over the last few years,” it said.
MIDA said the total FDI approved from 2018 to September 2020 was valued at RM206.02 billion.
In 2020, nine existing foreign-owned manufacturing companies with total investments of RM394.3 million in Malaysia had implemented business rationalisation measures.
“These companies have either closed their business operations in Malaysia or relocated to other countries due to technology disruption that transformed their business landscape and reduction in demand for their products.
“This investment is a fraction of the total approved investment in the economy for the period from January-September 2020,” it said.
Meanwhile, MIDA said Malaysia remained a major producer of semiconductors and sensors for cars amid reports that potential investors in the automotive industry are considering setting up their assembly plants in neighbouring countries.
“Malaysia has one of the most comprehensive ecosystems in the region in the electrical and electronics, machinery and equipment, aerospace, automotive, and medical devices industries,” it added.
— NNN-BERNAMA
