Can Selangor still meet RM10 billion investment target amid global slowdown?

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Selangor remains optimistic about meeting its RM10 billion investment target for the year.

Selangor is projecting to achieve its RM10 billion investment inflow target for the current year, buoyed by a strong performance in the first half of 2022. Despite global economic uncertainties, the state recorded RM4.9 billion in approved manufacturing investments in the first six months, with RM3.3 billion attributed to foreign direct investment (FDI). This figure significantly surpasses half of the total RM7.5 billion in manufacturing investments secured for the entirety of 2021.
Strong First-Half Performance Drives Optimism

In the first half of 2022, Selangor attracted RM4.9 billion in approved manufacturing investments, a substantial portion of which, RM3.3 billion, came from foreign direct investments. This performance is particularly noteworthy as it already represents more than half of the RM7.5 billion in approved manufacturing investments for the entire previous year, 2021. Nationally, Malaysia secured RM43.1 billion in manufacturing investments during the same period, with FDI contributing RM35.5 billion.
Global FDI Trends and Asean's Appeal

Globally, foreign direct investment rebounded to pre-pandemic levels in 2021, reaching a total value of US$1.6 trillion. Cross-border deals and international project financing showed particular strength, supported by more favourable financing conditions and infrastructure stimulus. Despite risks such as the global energy crisis, inflation, and monetary tightening, Asean continues to be viewed as an attractive investment destination due to its resilient economies, expanding middle class, and young demographic.
Selangor's Strategic Development and Trade Initiatives

To bolster economic resilience and recovery, Selangor has introduced Rancangan Selangor Pertama (RS-1), a five-year development plan that identifies nine key industries for growth, including logistics, digital economy, and aerospace. The Selangor International Business Summit 2022 (SIBS 2022) serves as a platform to facilitate economic recovery and reinvention within Selangor, Malaysia, and the broader Asean region. Trade data indicates a significant surge in Malaysia's trade with Asean countries, which increased by 43.6 per cent to RM514.73 billion in the first eight months of 2022.
Selangor International Business Summit 2022 Highlights

The Selangor International Business Summit 2022 is set to be the largest business summit in the region, featuring a record 906 booths from 623 companies and participation from 24 countries. The event aims to achieve a negotiated transaction value of RM350 million, with an expected attendance of approximately 30,000 investors. This summit underscores Selangor's strategic positioning as a prime location for international investors looking to access Asean and global markets.

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Can Selangor still meet RM10 billion investment target amid global slowdown?

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