KUALA LUMPUR: Malaysia has secured RM92.8bil in approved investments for the first quarter of financial year 2026 (1Q26), with Japan emerging as the largest foreign investor and domestic investment recording its strongest year-on-year growth in the reporting quarter.
In a statement, the Malaysian Investment Development Authority (Mida) said the investments comprise 1,249 projects across the services, manufacturing and primary sectors.
“While the total value recorded a marginal 0.2% decline compared to RM93bil in 1Q25, approved projects are expected to create 50,226 new jobs, representing a 46.7% increase from the same period last year, underscoring a stronger labour market impact from approved investments.
“Foreign investments accounted for 60.5% or RM56.2bil of total approved investments, while domestic investments grew 13% year-on-year to RM36.6bil, representing 39.5% of total approvals, reflecting growing confidence among Malaysian businesses,” it told Bernama.
Mida said that among foreign investors, Japan emerged as the largest source of approved investments, with RM21.5bil, a significant increase from RM1.6bil recorded in 1Q25, followed by the People’s Republic of China (RM10.1bil), the United States (RM10.1bil), Singapore (RM6.7bil) and Thailand (RM2.5bil).
Across the states and federal territories, Mida said Selangor recorded the highest value of approved investments at RM33.5bil, followed by Johor (RM16.9bil), the Federal Territory of Kuala Lumpur (RM16.9bil), Penang (RM6.2bil) and Sarawak (RM4bil).
Mida chairman Tengku Datuk Seri Zafrul Abdul Aziz said the 1Q26 investment performance sends a clear signal that Malaysia’s economic fundamentals are strong, with both global and domestic investors continuing to place confidence in the nation.
“With gross domestic product growing at 5.4% and Moody’s projecting Malaysia as the fastest-growing A-rated economy over the next two years, we are proving that Malaysia is not just participating in regional value chains.
“We are emerging as a strategic hub for the industries that will define Asean’s and Asia’s next decade,” he said.
The investment authority said the services sector remained the largest contributor, accounting for RM60.8bil or 65.5% of total approved investments, involving 731 projects expected to create 19,758 new jobs.
