Kuala lumpur: Malaysia's foreign direct investment (FDI) rose 41.2 per cent to RM65.9 billion in 2025 from RM46.7 billion a year earlier, the Department of Statistics Malaysia (DoSM) said. Chief statistician Datuk Seri Dr Mohd Uzir Mahidin stated that this growth was driven by equity injections from foreign investors and inflows into debt instruments.

According to BERNAMA News Agency, the cumulative FDI position expanded to RM1.087 trillion at the end of 2025, accounting for 53.7 per cent of the gross domestic product (GDP), compared with 51.4 per cent in 2024. The direct investment abroad (DIA) recorded net outflows of RM12.4 billion in 2025, a decrease from RM35.5 billion the previous year.

The total DIA position stood at RM589.3 billion at the end of 2025, which is 29.1 per cent of GDP, down from 32.2 per cent in 2024. These investments generated income during the year, with foreign companies operating in Malaysia posting RM98.2 billion, while Malaysian enterprises abroad recorded earnings of RM39.9 billion.

In terms of FDI flows by sector, services was the top recipient in 2025, recording a net inflow of RM59.5 billion, followed by mining and quarrying with RM3.0 billion, and manufacturing at RM2.6 billion. The information and communication sub-sector within services accounted for 53.6 per cent of total services inflows, reflecting the global shift towards digitalisation.

Financial activities also recorded inflows of RM26.1 billion, supported by sustained investor confidence in Malaysia's financial sector. The manufacturing sector was the largest contributor to FDI income, generating RM55.5 billion. By the end of 2025, services and manufacturing sectors remained the largest components of Malaysia's FDI stock, valued at RM596.7 billion and RM419.3 billion respectively.

Asia remained the largest source of FDI in 2025, contributing RM73.2 billion in inflows and accounting for the largest FDI stock at RM679.2 billion. Within Asia, Singapore and Hong Kong were the main source economies, while the Americas led in terms of FDI income with RM45.6 billion, with the United States as the key investor.

Net DIA outflows in 2025 were largely driven by the services sector, which recorded RM15.6 billion, mainly in financial activities and transport. The services sector also accounted for the largest share of income, totaling RM25.3 billion, followed by mining and quarrying at RM7.8 billion. The services sector remained the largest contributor to the DIA position, with a cumulative value of RM440.2 billion.

In terms of regional distribution, Africa was the main destination for DIA flows in 2025, at RM7.0 billion, with investments largely concentrated in the oil and gas industry. Meanwhile, Asia recorded the highest DIA income at RM22.8 billion and remained the largest region in terms of DIA position, amounting to RM339.0 billion as at end-2025.