Which sector leads domestic direct investment approvals in Malaysia?

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The Services Sector Leads Domestic Direct Investment Approvals in Malaysia

The services sector has consistently received the largest share of approved domestic direct investment (DDI) in Malaysia. Between 2013 and the first quarter of 2023, this sector accounted for approximately RM1 trillion, representing 73.3 per cent of the total DDI approved during that period. This significant inflow underscores the sector's pivotal role in driving local economic growth and development.
Services Sector Dominance in DDI

Of the total RM1.37 trillion in DDI approved from 2013 to the first quarter of 2023, the services sector attracted a substantial RM1.0043 trillion. This figure highlights the sector's expansive reach and its capacity to absorb significant investment. The investments within the services sector are noted for fostering innovation and enhancing Malaysia's global competitiveness, according to Minister Datuk Seri Tengku Zafrul Abdul Aziz.
Manufacturing and Primary Sectors' Contribution

Following the services sector, the manufacturing sector received RM291.8 billion, which constituted 21.3 per cent of the total DDI approvals. The primary sector secured the remaining RM73.9 billion, making up 5.4 per cent of the total DDI. While these sectors also contribute significantly, their approved DDI amounts are considerably lower than that of the services sector.
Initiatives to Foster Domestic Investment

In recognition of DDI's importance to Malaysia's Gross Domestic Product (GDP), the Ministry of Investment, Trade and Industry (Miti) and the Malaysian Investment Development Authority (Mida) have implemented several initiatives. These include the Supply Chain Coordination Programme, Mida’s SME Desk, and the Industry4WRD Intervention Fund. These programmes aim to integrate local companies into global supply chains, provide advisory services to SMEs, and support the adoption of Industry 4.0 technologies, thereby strengthening the domestic industrial ecosystem.

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Which sector leads domestic direct investment approvals in Malaysia?

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