In 2024, Malaysia approved a record 378.5 billion ringgit ($85.8 billion) in investments, a 14.9% increase from 2023. Notable digital investments from major tech companies boosted the economy. Domestic investors contributed 208.1 billion ringgit while foreign investments totaled 170.4 billion ringgit, with the U.S. as the top foreign investor. The services sector received the majority of investments at 66.8%.
Kuala Lumpur reports that Malaysia has achieved a historic milestone in approved investments, totaling 378.5 billion ringgit (approximately $85.8 billion) in 2024, marking a 14.9% increase compared to the previous year. This impressive growth was significantly influenced by substantial digital investments from global technology giants, including Google, which spurred economic growth beyond market forecasts in both the second and third quarters. The ringgit has also emerged as one of the strong-performing currencies in Asia for this year.
Trade Minister Tengku Zafrul Aziz disclosed that out of the total approved investments, 208.1 billion ringgit originated from domestic investors while 170.4 billion ringgit came from foreign sources. The United States led as the top foreign investor, contributing 32.8 billion ringgit, closely followed by Germany at 32.2 billion ringgit. Other notable foreign investments were made by China, contributing 28.2 billion ringgit, and Singapore, which invested 27.3 billion ringgit.
The services sector absorbed the majority of the investments, accounting for 66.8% or approximately 252.7 billion ringgit of the total. Despite existing global economic challenges, Minister Tengku Zafrul expressed that businesses are optimistic about a stable operational environment in Malaysia over the upcoming three months, highlighting faith in the nation’s economic resilience.
These figures not only demonstrate Malaysia’s robust investment landscape but also reflect a growing confidence in its ability to attract and retain capital in a volatile global economy, thus solidifying its position as a key investment hub in the region.
Malaysia’s record-breaking approval of 378.5 billion ringgit in investments for 2024 underscores a strong economic outlook bolstered by significant contributions from both domestic and foreign investors. With the services sector leading in investment allocation and the resilience shown by businesses amidst global challenges, Malaysia is positioning itself as an attractive destination for future investments.
Original Source: money.usnews.com
