Malaysia continues to shine in attracting FDI despite regional competition
- Sep 11, 2024
- 1 min read
Malaysia continues to attract foreign direct investment (FDI) despite stiff competition from regional players like Vietnam and Singapore.
In the first half of 2024, Malaysia secured RM160 billion in investments, an 18% year-on-year increase, driven by its stable economic fundamentals—low inflation (2%), steady interest rates (3%), and a 3.3% unemployment rate, according to Amir Fareed Rahim, director of strategy at KRA Group.
Over half of these investments were directed towards sectors outlined in Malaysia’s National Investment Aspirations (NIA), with RM60.1 billion going to manufacturing, expected to create 33,000 high-value jobs. Amir attributed the semiconductor industry's upcycle and government policies for the growth.
To sustain long-term growth, Malaysia must develop a strong talent pipeline and position itself as a research and development hub in sectors like electronics. Malaysia’s neutrality in foreign policy and upcoming ASEAN chairmanship in 2025 are also seen as key in maintaining investor confidence and economic momentum.
Article from The Star Malaysia. Read more here or in the PDF below.
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