What drove RM71.4 billion in approved investments for Malaysia in Q1 2023?

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Approved Investments in Malaysia Driven by Strong FDI and DDI, Primarily in Services Sector

Malaysia attracted RM71.4 billion in approved investments during the first quarter of 2023. This significant inflow was driven by a near-equal contribution from foreign direct investments (FDI) and domestic direct investments (DDI), with the services sector, particularly information and communications, being the largest recipient. These investments are projected to create 23,977 new job opportunities across the country.
Foreign and Domestic Investments Show Robust Confidence

Foreign direct investments accounted for RM37.5 billion, representing 52.5 per cent of the total approved investments. Key sources of FDI included Singapore, which contributed RM11.5 billion, followed by the British Virgin Islands at RM7.1 billion, and the People's Republic of China with RM6.5 billion. Domestic direct investments were also substantial, totalling RM33.9 billion or 47.5 per cent of the approved investments. This strong DDI inflow signals renewed domestic investor confidence in Malaysia's economic trajectory and prospects.
Services Sector Dominates Investment Landscape

The services sector emerged as the primary beneficiary of approved investments, attracting RM53.6 billion, which constituted 75.1 per cent of the total. This represents a significant year-on-year growth of 226.8 per cent compared to the first quarter of 2022. Within the services sector, the information and communications sub-sector was particularly strong, drawing RM24.9 billion in investments. The real estate sub-sector followed with RM15.5 billion, and distributive trade secured RM6.7 billion.
Manufacturing and Primary Sectors Also Contribute

Beyond the services sector, the manufacturing industry attracted RM15.6 billion, making up 21.8 per cent of the total approved investments. This included significant commitments towards the production of cylindrical Li-Ion batteries and photovoltaic functional glass. The primary sector garnered RM2.2 billion in approved investments, with the mining sub-sector receiving RM2.1 billion, indicating continued activity in resource extraction.
Top States Attract Majority of Investments

Geographically, the Federal Territories of Kuala Lumpur led in attracting approved investments, securing RM21.8 billion in the first quarter of 2023. Johor followed with RM10.6 billion, while Selangor attracted RM7.4 billion. Perak received RM7.1 billion, and Sabah secured RM6.3 billion, highlighting the concentration of investment activities in these key states.

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What drove RM71.4 billion in approved investments for Malaysia in Q1 2023?

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