FDIs into Malaysia down 12.7% to RM41b in 2017

KUALA LUMPUR: Foreign direct investments (FDIs) into Malaysia fell 12.7% in 2017 to RM41bil from the record RM47bil in 2016, according to the Statistics Department.

It said on Tuesday the FDI flows in 2017 were mainly channelled into the services sector, particularly in real estate, financial and insurance / takaful; and Information and communication activities.  Mining and quarrying was the second contributor, followed by manufacturing sector.

Asia accounted for the largest amount of FDI into Malaysia with a share of 63.5%, followed by Europe and Africa. 

Within Asia, Hong Kong remained as the prominent investor country, while China overtook Singapore as the second largest contributor.

As at end of 2017, the expansion of FDI position to RM570.3bil (2016: RM547.4bil) was due to the continuous
inflows of FDI.

“The statistics on investment is a vital indication to determine the direction of Malaysia’s economy. It assists in identifying new opportunities and enhancing market access for companies in Malaysia and abroad,” it said.

The department pointed out FDI flows into Malaysia have been on the upward trend since 2001. However, the lower FDI flows in 2009 were largely due to global financial crisis. 

The FDI flows reached a new high in 2016 with a value of RM47bil, mainly contributed by Asia region in the services sector.