KUALA LUMPUR: Malaysia recorded RM426.7 billion in approved investments for 2025, the highest level ever, up 11 per cent from RM384.4 billion in 2024, reflecting continued growth despite a cautious global climate.
In a statement, the Malaysian Investment Development Authority (MIDA) said Malaysia’s performance is anchored in tangible project commitments: 8,390 approved projects across the services, manufacturing, and primary sectors, expected to generate 244,902 new jobs.
Beyond the record total, key indicators also showed improvement. The number of approved projects rose by 9.2 per cent, while expected job creation increased by 17.9 per cent.
Domestic investments (DI) totalled RM219.6 billion (51.5 per cent), while foreign investments (FI) increased by 20.9 per cent to RM207.1 billion (48.5 per cent). Foreign investments grew across all three economic sectors: 63.4 per cent in the primary sector, 28.7 per cent in services, and 13.1 per cent in manufacturing - reflecting continued international confidence in Malaysia as an investment destination.
This balanced composition reflects strong domestic participation alongside sustained foreign investor interest. The composition of FI also reflects evolving regional trends. Singapore (RM58.3 billion) and China (RM58.0 billion) were the two largest sources, followed by the United States (RM15.1 billion), Japan (RM7.6 billion), and Hong Kong (RM7.1 billion), rounding out the top five.
"What gives me equal confidence is the balance of this achievement. More than half of our approved investments came from domestic sources, a clear signal that Malaysian businesses believe in this country's direction and future,” Deputy Investment, Trade and Industry (MITI) Minister Sim Tze Tzin said.
At the same time, the surge in foreign investment by 20.9 per cent reflects sustained international confidence in Malaysia as a destination for long-term, high-quality capital, he added.
"Malaysia’s investment success is no accident - it is the product of clear policies, consistent institutions, and the reforms we put in place since early 2023,” MIDA chairman and senior political advisor to the Prime Minister, Tengku Datuk Seri Zafrul Abdul Aziz said.
He said that with the MADANI Economic Framework, New Industrial Master Plan (NIMP) 2030, and MITI’s policy architecture giving investors certainty, and with 84.9 per cent of approved manufacturing projects already realised or underway, "we have shown how Malaysia can stay resilient even as the world turns uncertain.”
The new facilities, advanced technologies, and quality jobs created in recent years reflect the nation’s capability to turn investor confidence into industrial growth, while maintaining Malaysia’s position as a competitive and resilient investment destination, he added.
Among others, the services sector secured RM281.3 billion in approved investments, or 65.9 per cent of the national total, involving 7,004 projects and projected to generate 134,926 new jobs, the largest share of total job creation.
Domestic sources contributed 63.0 per cent (RM177.2 billion), while foreign investment made up 37.0 per cent (RM104.1 billion), representing a 28.7 per cent year-on-year increase.
The information and communication sub-sector led the surge with RM152.9 billion. A lion’s share of these approvals was driven by digital investments in artificial intelligence (AI), big data, data centres, and cloud computing.
Data centres are projected to contribute RM14.1 billion to Malaysia's economy in 2025. Their energy demands are accelerating the transition to renewable energy, driving the expansion of large-scale solar projects towards the goal of 70 per cent renewable energy by 2050, MIDA said.
Beyond digital investments, the services sector's growth was further supported by strong performances in real estate: RM78.2 billion, a 21.2 per cent increase from RM64.5 billion in 2024, involving 1,123 projects across residential, serviced apartment, and commercial developments nationwide, including an integrated energy hub and deep-sea port project aligned with Malaysia’s green energy transition under NIMP 2030 and the National Energy Transition Roadmap (NETR).
Other contributors were utilities (RM13.7 billion), support services (RM12.6 billion), and distributive trade (RM10.8 billion).
The manufacturing sector recorded RM131.3 billion in approved investments in 2025, representing 30.8 per cent of Malaysia’s total approved investments across 1,354 projects.
Foreign investments (FI) accounted for RM100.6 billion (76.6 per cent), while domestic investments (DI) contributed RM30.7 billion (23.4 per cent).
This continued inflow of capital underscores Malaysia’s position as a competitive destination for high-technology and advanced manufacturing activities, MIDA said.
"At MIDA, our focus goes beyond attracting investments; it is about ensuring that approved projects are implemented efficiently and successfully on the ground,” MIDA’s chief executive officer, Datuk Sikh Shamsul Ibrahim Sikh Abdul Majid said.
Over the years, MIDA has strengthened its facilitation mechanisms, enhanced coordination across government agencies, and deepened its engagement with investors to support the timely realisation of projects.
"These efforts reflect MIDA’s ongoing evolution into a more agile and responsive investment promotion agency, committed to partnering with investors throughout their journey and delivering lasting value to Malaysia’s economy,” he said. - Bernama
