Thursday 28 Mar 2024
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KUALA LUMPUR (May 19): United Overseas Bank Malaysia Bhd (UOB Malaysia) has projected approved investments in Malaysia to increase by 13% to RM185 billion in 2021, of which nearly 40% will be attributed to foreign direct investment (FDI).

In a statement today, UOB Malaysia said it expects top sources of FDI to be China, Europe and the United States (US), while capital is likely to be channelled mainly into the high-value-added sectors, including electrical and electronics (E&E), chemical, manufacturing and industrial.

The bank added that despite the challenging economic environment instigated by the Covid-19 pandemic, in 2020 Malaysia recorded RM164 billion in total approved investments, of which RM64.2 billion or 39.1% were from FDI sources.

“China was Malaysia’s main source of FDI at RM18.1 billion, equivalent to a share of 28.2%. Other contributors included Singapore which recorded RM10 billion in FDI, the Netherlands with RM7 billion, as well as the US with RM4.3 billion,” said the bank.

UOB Malaysia stated that in 2020, the bank had successfully facilitated an increase of close to 20% in FDI inflows from China, compared with the prior year. 

In the same vein, the bank added that it supported a steady flow of new investments from European companies, particularly from France, Germany and the United Kingdom (UK), which grew close to 10% in FDI annually.

“To ride on the FDI trend, the bank is collaborating with the Malaysian Investment Development Authority (MIDA) to facilitate investments from both China and Europe’s major companies of high-value-added sectors in the E&E, chemical, manufacturing and industrial sectors.

“Following the signing of a memorandum of understanding with MIDA on Jan 10, 2020, UOB Malaysia has been working closely with MIDA to help companies from Greater China, Europe and within Southeast Asia expand and invest in Malaysia and across the region,” said UOB Malaysia. 

Since 2013, UOB’s FDI Advisory Unit has supported more than 500 foreign companies establishing or expanding their operations in Malaysia, as well as local companies venturing across ASEAN.

UOB Malaysia managing director and country head of wholesale banking Ng Wei Wei said the reconfiguration of supply chains into ASEAN due to geopolitical uncertainties, including US-China trade tensions, continues to be a catalyst for growth in key sectors such as industrial, consumer goods and telecommunications media and technology.

“In addition, with the Malaysian government’s push to drive the country’s environmental, social and governance agenda, we see a rise in interest for renewable energy-related projects, such as those in solar power.

“As the country makes the transition to renewable energy and enhances its infrastructure with cleaner sources of energy, it will attract more investments from multinationals looking to expand their operations in a sustainable manner,” she said.

Edited BySurin Murugiah
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