Malaysia: Malaysia has secured RM89.8 billion in approved investments for the first quarter of 2025 (1Q 2025), a steady 3.7 per cent year-on-year increase despite a challenging global economic backdrop.
According to BERNAMA News Agency, the Malaysian Investment Development Authority (MIDA) announced that these investments, spanning 1,556 projects in manufacturing, services, and primary sectors, are expected to create over 33,300 new employment opportunities for Malaysians. The authority highlighted that these results demonstrate sustained investor confidence in Malaysia’s clear policies and robust long-term fundamentals, countering the trend of cautious international capital flows amid geopolitical and macroeconomic volatility, as well as intensifying global competition for new investments.
Foreign investments (FIs) played a dominant role, contributing RM60.4 billion or 67.3 per cent of total investments, while domestic investments (DIs) made up RM29.4 billion or 32.7 per cent. Beyond job creation, Investment, Trade and Industry Minister Tengku Datuk Seri Zafrul Aziz noted an increase in the Managerial, Technical, and Supervisory (MTS) index to 46.3 per cent from 44.2 per cent in the same quarter last year, underscoring Malaysia’s success in fostering higher-skilled, better-paying jobs.
As ASEAN chair, Malaysia is actively working towards a more integrated ASEAN economy, positioning itself as a hub for manufacturing and services in the rapidly growing 680-million strong region. However, the investment landscape in 2025 is expected to remain challenging due to ongoing geopolitical and macroeconomic headwinds, particularly from the US-China trade war. Despite these challenges, Minister Zafrul Aziz expressed optimism that Malaysia’s transparent policies would continue to attract investments from Asia’s burgeoning economy, projected to account for about 42 per cent of global GDP by 2040.
MIDA’s chief executive officer, Datuk Sikh Shamsul Ibrahim Sikh Abdul Majid, emphasized that the projects secured in 1Q 2025 align with national efforts to cultivate a more diversified and resilient economy. MIDA is committed to enhancing the local ecosystem and preparing the workforce to seize emerging job and leadership opportunities, ensuring Malaysia’s relevance in global value chains and attracting investments that benefit the economy, enterprises, and people over the long term.
As of June 10, 2025, MIDA is managing a robust pipeline of proposed projects valued at RM48.5 billion. The services sector is at the forefront, with 683 projects contributing RM27.6 billion, while the manufacturing sector accounts for RM20.9 billion across 89 projects. In addition, RM59.3 billion in high-potential investment leads are currently under negotiation, reflecting a healthy appetite for investment and growing confidence in Malaysia’s economic fundamentals and policy direction.