SEBERANG PERAI, Feb 13 — Malaysia achieved its highest-ever foreign direct investment (FDI) last year at RM38.8 billion, surging 3.9 per cent past its previous record of RM37.3 billion in 2011, Datuk Seri Mustapa Mohamed announced today.
This is an increase of 24 per cent as compared to RM31.1 billion recorded in 2012, the International Trade and Industry Minister said.
According to Mustapa, the increase of FDI in Malaysia is favourable compared to the 11 per cent increase in global FDI, 6.2 per cent in developing nations, and 2.4 per cent in Southeast Asia as reported by the United Nations Conference for Trade and Development’s (UNCTAD) last year.
The FDI inflows recorded in 2013 also showed increases in all sectors of the economy and is spread out throughout the nation.
He said the investments recorded are mainly in the manufacturing sector (37.6 per cent), services sector (28.8 per cent) and mining sub-sectors (28.7 per cent).
Financial and insurance activities along with information and communication sub-sectors contributed 55 per cent of the investments in the services sector last year.
A total record of RM161.1 billion private investments was realised last year, a 14.9 per cent increase from the RM140.2 billion recorded in 2011.
The investments, measured in terms of Gross Fixed Capital Formation, also exceeded the annual average target of RM148 billion under the 10th Malaysia Plan.
The ministry and the Malaysian Investment Development Authority (MIDA) however did not disclose the breakdown of FDI according to countries.
Malaysia was rated the 16th best investment destination by the United Nations Conference on Trade and Development (UNCTAD) last year, improving on its 19th place from 2012 and drawing level with France and Canada.
UNCTAD also ranked Malaysia 11th among the top 20 economies with the highest FDI rates of return ― 17 per cent in 2011 ― the same as Paraguay and Guatemala.
Mustapa said many prominent multinational companies (MNCs) and large corporations have chosen to base their operations in Malaysia, including aerospace industry firms such as Singapore Aerospace Manufacturing (Sam) that opens its Penang plant - Aviatron (M) Sdn Bhd - today.
“In the long run, investments by MNCs that have also established structured training programmes to transfer key competencies to Malaysian employees will create high income employment opportunities for Malaysians,” he said during the grand opening of Aviatron here.
In terms of investment, the minister revealed that between January and October last year, three projects were approved in the aerospace industry totalling to RM44 million in investments.
“FDI in these projects amounted to RM31.5 million while domestic investments totalled RM13.6 million,” he said.
