Friday 29 Mar 2024
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KUALA LUMPUR (Feb 26): Malaysia recorded RM181.5 billion in realised private investments last year, a 13.1% jump from RM160.5 billion in 2013.

This was against the backdrop of an 8% drop in global foreign direct investments (FDIs) to the country to RM35.08 billion in 2014 from RM32.24 billion in 2013, said International Trade and Industry Minister Datuk Seri Mustapa Mohamed.

"Despite economic challenges, investment in Malaysia continued to move in an upward trajectory, registering a double-digit growth in yearly gross fixed capital formation since 2010," he told reporters after announcing Malaysia's investment performance for 2014 here today.

Mustapa said the decline in global FDIs into the country was in tandem with the drop in global FDI inflow, which slipped 8% to US$1.26 trillion last year from US$1.36 trillion in 2013.

Citing a study by the United Nations Conference on Trade and Development (UNCTAD), Mustapa said the decline was attributed to uncertainty in the global economy.

"The fragility of the world economy, with growth tempered by hesitant consumer demand along with volatility in currency markets and geopolitical instability will act as a deterrent for investors," he added.

Earlier, Mustapa said the country approved a record direct investments of RM235.9 billion last year from RM219.4 billion in 2013. This also surpassed the RM148 billion average annual target of the 10th Malaysia Plan (2011-2015).

Of this, 72.6% or RM64.6 billion were generated from domestic investments, while the remaining 27.4% or RM171.3 billion were contributed from FDIs.

On a segmental basis, the services sector contributed a 63.4% to the total investments, followed by the manufacturing sector (30.5%) and the primary sector (6.1%).

This year, Mustapa said Mida targets to approve RM56 billion of investments in the manufacturing sector and RM64.5 billion investments in the services sector excluding real estate.

"Mida will continue to focus on ecosystem approach for targeted industries. This year, there are RM65.1 billion worth of projects in the pipeline and we expect a modest growth to sustain the country's investment performance," he added.

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