The Malaysian Investment Development Authority (MIDA) has refuted a recent report by a Singapore daily on foreign investors fleeing Malaysia as ‘incorrect’, saying that the country remains an attractive investment destination for high-value manufacturing and global services in Asia.
MIDA said that Malaysia offers a favourable environment with the availability of excellent infrastructure, financial and banking services, skills and trainable workforce, telecommunication services, supporting industries as well as market opportunities through the 16 Free Trade Agreements it has signed, according to a Bernama report.
“The piece falsely indicates that the United Nations Commission on Trade and Development (UNCTAD) report confirmed what has been spoken of anecdotally,” said MIDA.
According to MIDA, it has identified a total of 240 high-profile foreign investment projects with RM81.9 billion in combined potential investment value.
“Presently, MIDA has also received RM47.7 billion worth of potential investments into the country. These projects, once approved, are expected to be implemented within the year 2021 to 2022,” it shared.
Data from the Department of Statistics Malaysia (DOSM) also showed that total gross foreign direct investment (FDI) inflow to Malaysia for January to September 2020 has increased by 5.8% to RM108.2 billion from the RM102.3 billion registered over the same period in 2019.
“This is a considerable achievement given the Movement Control Order (MCO) and Recovery MCO in the second and third quarter of last year, respectively,” noted MIDA.
“The Gross FDI inflow is also reflective of the high levels of FDI projects approved and implemented in the economy including manufacturing, services, and primary sectors over the last few years,” it added.
From 2018 to September 2020, total FDI approved was valued at RM206.02 billion, said MIDA.
It revealed that nine foreign-owned manufacturing firms with RM394.3 million in total investments in the country had implemented business rationalisation measures in 2020.
“These companies have either closed their business operations in Malaysia or relocated to other countries due to technology disruption that transformed their business landscape and reduction in demand for their products,” said MIDA.
However, it noted that the investment is just a fraction of the total approved investment for the period January to September 2020.
MIDA also said that Malaysia continues to be a major producer of semiconductors as well as sensors for cars amid recent reports that potential investors in the automotive industry are planning to set up assembly plant at neighbouring countries.
“Malaysia has one of the most comprehensive ecosystems in the region in the electrical and electronics, machinery and equipment, aerospace, automotive, and medical devices industries,” it added.