Kuala lumpur: Malaysia has successfully secured RM218.5 billion in approved investments during the first half of 2026 (1H 2026), representing an 11.7 per cent increase compared to RM195.5 billion in the same period last year, reports the Malaysian Investment Development Authority (MIDA).
According to BERNAMA News Agency, these investments span 2,746 projects across the services, manufacturing, and primary sectors, with expectations to generate 99,030 jobs, marking an 8.4 per cent year-on-year increase. MIDA stated that the approvals for 1H 2026 constituted 50.7 per cent of the RM431.1 billion approved for the entirety of 2025. The authority noted that this performance is significant against a backdrop of a softening global economy, with the International Monetary Fund's July 2026 World Economic Outlook forecasting global growth at three per cent for the year and Malaysia's economy projected to expand by 4.7 per cent.
Foreign investments accounted for RM126.9 billion, or 58.1 per cent of the total approved investments, reflecting an 18.5 per cent year-on-year increase, whereas domestic investments contributed RM91.6 billion, or 41.9 per cent, marking a 3.5 per cent rise. This demonstrates sustained confidence from both international and Malaysian investors.
The United States emerged as the leading source of foreign investment at RM33.1 billion, followed by Singapore at RM25.9 billion, Japan at RM22.3 billion, China at RM16.5 billion, and the Cayman Islands at RM4.1 billion. These top five sources together supplied over 80 per cent of approved foreign investments.
Selangor led the approved investments with RM70 billion across 835 projects, primarily driven by digital advancements in artificial intelligence, big data analytics, cybersecurity, financial technology, cloud computing, and the Internet of Things. Johor followed with RM59.4 billion, supported by the Johor-Singapore Special Economic Zone and the upcoming Rapid Transit System Link. Kuala Lumpur recorded RM26.6 billion, driven by residential and serviced apartment developments connected to urban growth and transit-oriented development. Penang secured RM20.2 billion, primarily from advanced manufacturing and semiconductor investments, while Sarawak registered RM10.8 billion, mainly from offshore oil and gas exploration.
The services sector attracted the largest share of approved investments at RM149.6 billion, up 21 per cent year-on-year, involving 1,750 projects expected to create 34,475 jobs. Foreign investments in this sector rose by 66.7 per cent to RM86.9 billion, while domestic investments contributed RM62.7 billion, fostering opportunities for local businesses and suppliers. Information and communications led the sector's growth, with approved investments rising 68.2 per cent to RM103.3 billion, while data centre and cloud computing projects accounted for RM95.8 billion amid increasing regional demand for AI computing power.
The largest industries, including machinery and equipment, food manufacturing, electrical and electronics, fabricated metal products, plastic products, and transport equipment, accounted for 76.9 per cent of manufacturing approvals. Notably, nearly one-third of the approved manufacturing projects plan to export at least 80 per cent of their output, with such projects increasing by 57.3 per cent year-on-year.
MIDA Chairman Tengku Datuk Seri Zafrul Abdul Aziz highlighted that the half-year performance was driven by the services and manufacturing sectors, both reflecting the quality and scale of investments. He emphasized investor confidence bolstered by structural reforms that improved Malaysia's ranking in the International Institute for Management Development World Competitiveness Ranking 2026, where Malaysia achieved its best placing in over a decade by ranking 15th out of 70 economies. Guided by the New Industrial Master Plan 2030, MIDA remains committed to prioritizing investments that transfer technology, deepen local vendor participation, and create high-value jobs for Malaysians.
As of August 10, 2026, MIDA is reviewing 227 proposals worth RM72.1 billion, comprising 128 services projects worth RM36.5 billion and 99 manufacturing projects worth RM35.6 billion, with an additional RM58.4 billion in high-potential leads under discussion. MIDA CEO Datuk Sikh Shamsul Ibrahim Sikh Abdul Majid emphasized that converting investment commitments into operational plants and jobs is crucial, where MIDA's facilitation efforts play a key role. Through the Invest Malaysia Facilitation Centre and collaboration across ministries and agencies, MIDA helps investors overcome regulatory and implementation hurdles promptly, as evidenced by the 86.3 per cent of manufacturing projects approved since 2021 moving into implementation.