MALAYSIA'S RM285.2 BILLION APPROVED INVESTMENTS IN 9M 2025 UP 13.2% Y-O-Y, DEFIES GLOBAL HEADWINDS, CREATES OVER 150,000 JOBS

 

 

● Malaysia attracted RM285.2 billion in approved investments for the first nine months of 2025 (9M 2025), marking a 13.2% year-on-year (y-o-y) increase compared to the same period in 2024. The services sector dominated with RM187.9 billion (65.9%), followed by manufacturing at RM93.8 billion (32.9%), and the primary sector at RM3.5 billion (1.2%).
● Foreign Investments (FI) accounted for 52.9% or RM150.8 billion of total approved investments, while Domestic Investments (DI) contributed 47.1% or RM134.4 billion.
● The services sector’s share recorded RM187.9 billion in approved investments, showing a significant 19.8% y-o-y increase from RM156.8 billion in 9M 2024.
● Manufacturing sector’s approvals reached RM93.8 billion, representing strong 5.6% y-o-y growth. This was contributed by a 9.2% increase in FI and a 25.2% increase in new jobs.
● Singapore emerged as the leading source of FI with RM52.7 billion, followed by People’s Republic of China (RM35.8 billion), the United States of America (RM11.3 billion), the British Virgin Islands (RM6.6 billion), and Japan (RM4.8 billion).
● Johor led all states with RM91.1 billion in approved investments, followed by Selangor (RM51.9 billion), W.P. Kuala Lumpur (RM45.9 billion), Penang (RM23.7 billion), and Kedah (RM17.5 billion).
● Between 2021 to September 2025, 85.0% of manufacturing projects have been implemented, which includes full-scale production, factory construction, and machinery installation.

KUALA LUMPUR, Nov 18 (Bernama) -- Malaysia's investment performance has proved remarkably resilient in a turbulent global environment. The country attracted RM285.2 billion in approved investments during the first nine months of 2025 (9M 2025), a 13.2% increase from the previous year. This strong showing comes at a time when geopolitical and trade tensions, supply chain disruptions, and tighter monetary conditions have dampened investment flows in many other markets, underscoring Malaysia's enduring appeal as an investment destination.

The 4,874 approved projects span manufacturing, services, and primary sectors. The approvals cover a projected employment creation of 152,766 new jobs, reflecting the scale and sectoral breadth of investors’ interests in Malaysia's economy.

Foreign Investment Accelerates
 
Foreign Investments (FI) surged 47.5% year-on-year, with gains across all three (3) sectors: services climbed 122.0%, manufacturing advanced 9.2% and primary industries grew 56.6%. The strong performance reflects Malaysia’s competitive fundamentals and the industrial clusters being developed under the New Industrial Master Plan 2030. It also demonstrates the government's success in fostering public-private collaboration and positioning the country as a regional hub for advanced manufacturing and sustainable industries.
 
For approved investments based on foreign sources¹, Singapore accounted for the largest share of FI at RM52.7 billion, followed by the People's Republic of China (RM35.8 billion), the United States of America (RM11.3 billion), the British Virgin Islands² (RM6.6 billion), and Japan (RM4.8 billion). The composition reflects Malaysia's strategic position between major economies, its role in supply-chain diversification efforts, and deepening market integration within ASEAN.

_{¹ Compilation of foreign investments is based on the ultimate source. The ultimate source refers to the home country of the foreign investor that holds control over the decision-making process and investment management, even if the investment flows through several intermediary sources.
² Based on declaration by the applicant company in its submission to MIDA and relevant Ministries/Agencies.}

Johor Leads the Pack
 
Johor recorded the highest value of approved investments (RM91.1 billion), followed by Selangor (RM51.9 billion), W.P. Kuala Lumpur (RM45.9 billion), Pulau Pinang (RM23.7 billion) and Kedah (RM17.5 billion).
 
Johor's dominance is largely attributed to the Johor-Singapore Special Economic Zone (JS-SEZ) and its proximity to one of Asia's most advanced economies. Two states under the Central Corridor region, Selangor and Kuala Lumpur, continue to benefit from established infrastructure and their role as Malaysia's commercial and financial nerve centre. Penang's strength lies in its mature electronics ecosystem, while Kedah is emerging as a beneficiary of northern corridor development initiatives.

National Investment Aspirations (NIA) - Driving Malaysia’s Long-Term Growth

Focus sectors under the National Investment Aspirations (NIA) framework attracted RM137.9 billion, representing 48.4% of total approved investments. These 676 projects are expected to generate 49,488 jobs, demonstrating alignment between investment strategy and national development objectives.
 
Projects under the purview of the Ministry of Investment, Trade and Industry (MITI) and MIDA accounted for RM159.1 billion, or 55.8%. This includes 1,838 projects projected to create 75,068 jobs.

Senator Tengku Datuk Seri Utama Zafrul Aziz, Minister of Investment, Trade and Industry, described the performance as proof that Malaysia's economic strategy is working. "RM285.2 billion in nine months is exceptional by any measure. While global capital flows are contracting elsewhere, Malaysia continues to attract quality investments at scale. This reflects the confidence investors have in our political stability and economic vision. When global investors look at Southeast Asia, they are increasingly choosing Malaysia. We are not just competing within ASEAN—we are setting the benchmark. Our focused execution of key missions under the New Industrial Master Plan 2030 is attracting investments, while delivering jobs and upskilling opportunities to power up our transition towards a high-value, knowledge-based economy."

Services Sector Powers Ahead

The services sector secured RM187.9 billion in approved investments, representing 65.9% of the total across 3,969 projects. This marked an increase of 19.8% y-o-y, with an estimated 80,066 jobs to be created. The sector's dominance reflects Malaysia's growing importance as a regional hub for data centres, digital infrastructure, and corporate headquarters, as well as the continuing expansion of its financial services and logistics capabilities.

 
DI contributed RM111.8 billion (59.5%) while FI contributed RM76.1 billion (40.5%). This healthy balance reflects foreign and domestic investors’ continued confidence and the sector’s broad-based appeal.
 
Leading sub-sectors included:
 
● Information and Communications: RM99.8 billion
● Real Estate: RM56.6 billion
● Utilities: RM9.7 billion
● Distributive Trade: RM7.2 billion
● Support Services: RM7.0 billion
 
An example of a notable project elevating Malaysia’s services sector is MF Solar Tronoh Sdn. Bhd. which is investing RM123 million in a renewable energy generation facility in Tronoh, Perak. The project will generate clean electricity through solar power technology, contributing to Malaysia's green energy transition.

 

Manufacturing Attracts Quality Investments

The manufacturing sector attracted RM93.8 billion or 32.9% of total approved investments across 885 projects expected to generate 72,672 jobs. FI dominated at 77.9% (RM73.1 billion), with DI contributing RM20.7 billion (or 22.1%).
 
The share of higher-skilled roles continues to rise: the managerial, professionals/technical and supervisory (MTS) index reached 45.0%. This suggests a steady progress in moving up the value chain, a shift that will hinge on the continued upskilling of local talent and accelerating technology adoption.
 
Top Performing Industries
 
● Electrical and Electronics (E&E): RM22.0 billion
● Chemical and Chemical Products: RM17.5 billion
● Transport Equipment: RM12.7 billion
● Basic Metal Products: RM9.9 billion
● Non-metallic Mineral Products: RM7.5 billion

Notable Projects in the Manufacturing Sector

● A RM3.51 billion advanced semiconductor facility is being developed at Kulim High Tech Industrial Park in Kedah. The plant will produce system-in-package (SIP) systems or modules, microelectromechanical systems (MEMS), and sensors, positioning Malaysia at the forefront of advanced semiconductor packaging and sensor technology manufacturing.
 
● JXR Manufacturing Sdn. Bhd.: JXR is investing RM5.76 billion in an advanced mineral processing facility in Kemaman, Terengganu. The plant will produce alumina, positioning Malaysia as a key player in critical minerals processing for advanced manufacturing and green technology applications.
 
● Perusahaan Otomobil Nasional Sdn Bhd & PROTON Tanjung Malim Sdn Bhd (PROTON): The national carmaker is investing RM1.29 billion to expand its manufacturing complex in Tanjong Malim, Perak. The investment will establish production capabilities for new energy vehicles and their components, transmission and its components, alongside expanded capacity for passenger cars, multi-purpose vehicles, casting components, and metal stamping parts. The project positions Malaysia's automotive sector for the transition to electric mobility while strengthening the country's manufacturing ecosystem.

 
● Ferrotec Silicon Materials Malaysia Sdn. Bhd.: Ferrotec is investing RM256 million to expand its facility in Pasir Gudang, Johor. The plant will produce silicon products and components for semiconductor chips fabrication, supporting the precision manufacturing ecosystem that underpins Malaysia's semiconductor industry.
 
● Vitrox Technologies Sdn. Bhd.: The Malaysian technology firm is investing RM250 million in an advanced manufacturing facility in Penang. The investment reinforces the state's position as a critical node in global technology supply chains and strengthens Malaysia's homegrown capabilities in semiconductor inspection and testing equipment.
 
● T Hasegawa is investing RM185 million in a food technology facility at Techpark@Enstek in Negeri Sembilan. The plant will produce liquid flavors, flavor powders and mixed seasoning powders for the food and beverage industry.
 
● URC Snack Foods (Malaysia) Sdn. Bhd. is undertaking a RM100 million expansion in Pasir Gudang, Johor, to increase its production capacity for chocolate and confectionery products, strengthening Malaysia’s role as a regional hub for snack food.

Primary Sector Maintains Stability
 
The primary sector secured RM3.5 billion in approved investments across 20 projects, mainly in mining activities. The approved investments are dominated by domestic sources with RM1.9 billion (53.1%), while foreign sources contributed RM1.6 billion (46.9%).

Strong Project Pipelines and Leads Ahead

From January to September 2025, MITI and MIDA undertook nine (9) missions, including five (5) Trade and Investment Missions (TIMs) and four (4) official visits led by Prime Minister Dato’ Seri Anwar Ibrahim. These engagements covered the United Arab Emirates, United Kingdom, Switzerland, India, Russia, Saudi Arabia, Singapore, the United States of America (USA), Italy, France, China, and the Netherlands.
 
The missions secured investment commitments, deepened bilateral economic ties, and gave Malaysian officials direct access to decision-makers at major multinationals.
 
Malaysia’s pipeline of projects remains robust. As at 9 November 2025, MIDA is facilitating 192 potential projects valued at RM39.0 billion. The services sector leads with 119 projects worth RM24.4 billion, while manufacturing accounts for 73 projects valued at RM14.6 billion.

 
MIDA is also in discussions regarding an additional RM39.4 billion in high-impact investment leads—signaling sustained investor interest and confidence in Malaysia’s pro-business policies and long-term economic direction.
 
Datuk Sikh Shamsul Ibrahim Sikh Abdul Majid, Chief Executive Officer of MIDA, said the strong pipeline projects and investment leads reflect a shift in how investors view Malaysia. "We are no longer just an option in investors' diversification strategies—we are increasingly the preferred choice. What distinguishes this momentum is the quality of investments we are securing: technology-driven projects in digital infrastructure and advanced manufacturing that position Malaysia deeper into regional supply chains. Through the Invest Malaysia Facilitation Centre (IMFC), we have compressed decision-making timelines and removed bureaucratic friction. The RM39.0 billion pipeline we are actively facilitating, plus another RM39.4 billion in advanced discussions, demonstrates that investors' confidence remains robust despite external challenges. Notably, reinvestments by global multinationals signal sustained conviction in Malaysia's long-term fundamentals. What sets us apart is our ability to move swiftly from interest to implementation, ensuring that every commitment translates into real economic activity."

From Approvals to Implementation

Between 2021 to September 2025, the National Committee on Investment approved 4,378 manufacturing projects. Of these:
 
● 85.0% of projects (3,724) have been implemented, which includes full-scale production, factory construction, and machinery installation.
● 12.0% remain in the planning phase, focusing on critical activities such as site selection and developer consultations.
● 3.0% of projects were not implemented due to a change of commercial direction by the investor(s).

Implementation rates for specific periods reinforce this credibility:
● Over 90% of manufacturing projects approved in 2021 until 2024 have been implemented.
● 87.2% of 2024’s and 58.7% of January – September 2025’s projects are already progressing, a commendable rate given that the manufacturing project was just recently approved and the average lead time of 18 to 24 months typical for such developments.

Examples of implemented projects are provided in Appendix I.
 
The consistently high implementation rates reflect investor confidence, policy stability, efficient investor support services, and effective inter-agency coordination. The MADANI Government’s strategic reforms, crystal-clear focus on high-impact sectors, and streamlined investor facilitation are ensuring that each project creates quality employment, builds capacity, and contributes to a sustainable, high-value economy. This whole-of-government approach positions Malaysia as a preferred destination for quality investment for generations to come.

APPENDIX 1
INFOGRAPHIC [ENG]
INFOGRAPHIC [BM] 

About MIDA
The Malaysian Investment Development Authority (MIDA) is the Government’s principal investment promotion and development agency under the Ministry of Investment, Trade and Industry (MITI) to oversee and drive investments into the manufacturing and services sectors in Malaysia. Headquartered in Kuala Lumpur Sentral, MIDA has 12 regional and 21 overseas offices. MIDA continues to be the strategic partner to businesses in seizing the opportunities arising from the technology revolution of this era. For more information, please visit www.mida.gov.my and follow us on X, Instagram, Facebook, LinkedIn, TikTok and YouTube channel.

Explainer: DOSM’s FDI and MIDA’s approved Foreign Investment (FI)

There has been some confusion on the term Foreign Direct Investment (FDI) as reported by the Department of Statistics Malaysia (DOSM), and the approved Foreign Investment (FI) data as captured by MIDA. To clarify, the Government has determined the use of these terms since December 2023, as follows:

● MIDA reports on approved Foreign Investments (FI) – These represent proposed investment projects with foreign equity participation that have been granted licenses, incentives, permits, grants, soft loans, etc., by relevant Ministries and Agencies. They are measured based on CAPEX and OPEX, such as land, building, and resources. Approved FI reflects potential investments into the country which will be realised into actual inflows over a specified period, usually across multiple years. On average, 18-24 months is the typical duration to complete the required regulatory steps between approval and implementation, before projects get off the ground. The release of approved FI data serves as a forward-looking indicator of investor’s confidence, the strength of Malaysia’s investment prospects, and the key sectors attracting foreign investors.
 
● DOSM reports on Foreign Direct Investment (FDI) – This figure refers to investments by non- residents via transactions of financial instruments, including equity, reinvestment of earnings and debt instruments (such as inter-company loans and advances, trade credits, etc.). For instance, if a foreign investor buys shares in a Malaysian company, this would be captured by DOSM’s FDI data. FDI statistics for Malaysia are compiled as part of the balance of payments, which is compiled based on the IMF’s BPM6 guidelines.
 
For further information, please refer to
https://www.mida.gov.my/why-malaysia/investment-statistics/
 

SOURCE: Malaysian Investment Development Authority (MIDA)