SHAH ALAM (March 20): Selangor recorded its highest ever direct investment in 2018 at RM18.95 billion, a 238% surge from RM5.59 billion in the preceding year, contributed by higher foreign direct investment (FDI) and domestic direct investment (DDI).
Selangor Menteri Besar Amirudin Shari said in a press conference today FDI increased 400% year-on-year to RM10.84 billion while DDI increased 136% to RM8.11 billion compared to the previous year.
A total of 241 manufacturing projects were approved in the state in 2018, 19% higher than the 202 recorded a year earlier. The total manufacturing projects approved for the year was also the highest in the country.
"The performance reflects a shift in foreign investors' sentiment, particularly after the change in government on May 9 last year. Besides that, Selangor also has good logistics infrastructure in place, such as the ports, airports and roads, coupled with the investment ecosystem in place, which has attracted investors," said Amirudin.
New investments increased 427% to RM13.5 billion for the year, while expansion/diversification investments increased 79% year-on-year to RM5.42 billion.
In terms of foreign investment, China invested the most with RM3.93 billion, spread across basic metal products such as hot rolled coils, cold roll coils and paper products like wet pulp boards and corrugated boxes, among others.
Meanwhile, Japan recorded the highest number of approved projects with 27 projects worth RM435.6 million. These include investments in the semiconductor, factory automation, food, LED products and automotive segments.
By industry, basic metal products recorded the highest contribution among approved manufacturing projects at RM6.88 billion, followed by paper, printing and publishing (RM5.1 billion), rubber products (RM1.3 billion), food manufacturing (RM835 million) and plastic products (RM698 million).
The state also recorded the highest approved investment in the services sector in the country during the year, with RM5.78 billion invested in 2018 compared to RM4.5 billion a year earlier.
Out of the total investment in the services sector, RM4.9 billion was contributed by domestic investors while RM881.5 million came from foreign investors. The investments made were mainly in the oil and gas services, renewable energy, private healthcare, R&D activities, logistics and others.
Going forward, Amirudin said the state aims to secure RM10 billion in investments, amid the uncertain external economic environment.
"We are still positive. We believe we can achieve the RM10 billion target for 2019 but this will also depend on the global economic climate. Invest Selangor will closely monitor the global trends as it goes to other countries to attract FDI," he said, adding that the state investment arm has identified potential investors from Europe and Africa.