RM61.7 bln manufacturing, service projects approved from March to September

KUALA LUMPUR: A total of 1,053 manufacturing and service projects, involving a total investment of RM61.7 billion, were approved by the Malaysian Investment Development Authority (MIDA) from March to September this year.

Senior Minister and International Trade and Industry Minister Datuk Seri Mohamed Azmin Ali said the manufacturing sector accounted for RM57.9 billion of the investments while the services sector RM3.8 billion.

"Of the total, RM44 billion or 71.3 per cent were new investments, while RM17.7 billion or 28.7 per cent were for expansion and diversification activities.

"Of the total investments approved, domestic direct investments (DDIs) contributed 40.5 per cent or RM25 billion, while foreign direct investments (FDIs) contributed 59.5 per cent or RM36.7 billion," he said during the oral reply session in Parliament today.

He was answering questions from Noor Amin Ahmad (PH-Kangar) who asked to state how many new investments entered Malaysia since March 2020 and how many investors left or terminated their investments in the country in the same period.

Mohamed Azmin said 13 manufacturing companies that had closed down and ended their operations in Malaysia, involving investors from the United States, France, Belgium, Singapore, Hong Kong and Malaysia.

The closures, he said, were due to a reduction in demand as a result of intense competition among manufacturers of the same types of products, an increase in operating costs and global market uncertainty due to the direct impact of the COVID-19 pandemic.

"The government, through the Ministry of International Trade and Industry (MITI), has always ensured that domestic policies continue to support the country's economic growth, especially in increasing the rate of FDI and DDI by taking a continuous approach in ensuring Malaysia has a stable, conducive and dynamic investment ecosystem in the long run by implementing a number of initiatives," he said.

Among the initiatives that have been implemented are to encourage foreign and local investments in the high-tech, manufacturing, creative and new economic sectors.

"Until September 2020, the government was evaluating RM54 billion investment projects in the manufacturing and services sectors. In addition, MITI, through MIDA, conducts ongoing management sessions through overseas MIDA offices in an effort to attract high-profile investment projects.

"So far, MIDA has identified projects with potential investments worth RM75.4 billion from foreign investors from various countries targeted for 2020 and 2021, including from Japan, the United States, Germany, the Netherlands, South Korea, China, the United Kingdom and Taiwan," he said.

He also said the ministry had organised and participated in various investment promotion programmes, especially those conducted virtually through collaboration with chambers of commerce, banking institutions and the international business community.

"The government is committed to restoring the economy affected by the COVID-19 pandemic while maintaining the country as a top destination, especially for high quality and high impact domestic and foreign investment projects," he said.

-- BERNAMA