Malaysia recorded RM139.5 billion in realised private investments in 2012, a figure that surpasses the targetted investment of RM127.9 billion by 9 per cent, according to Minister of International Trade and Industry Datuk Seri Mustapa Mohamed. The realised private investment grew 24.8 per cent from 2011’s RM111.8 billion.
Mustapa also said that in spite of the uncertain global economic conditions, Malaysia managed to attract RM162.4 billion in approved investments last year, the highest ever amount of investments.
Domestic investments increased by almost four times the FDIs achieved in 2012.
Mustapa said that services accounted for 72.4 per cent, with manufacturing at 25.3 per cent and primary sectors at 2.3 per cent. Many of 2012’s investments were in the new and emerging technologies, particularly within the aerospace, semiconductors, solar, machinery and equipment, biotechnology, petroleum and petrochemical, medical devices and the oil and gas services sectors.
Mustapa was confident that there would be a recovery in the global economy, with Europe and the United States helping to push the FDI numbers. He expects at least USD $12 billion in FDI this year along with recovery in the electrical and electronics industry.
When asked about whether the upcoming elections would affect the private investment numbers, Mustapa said that it would not be the case, citing that the previous year was fruitful despite rumours about 2012 being an election year. He said that investors were not holding back, as evidenced by projects such as Iskandar Malaysia, Medini as well as the Malaysia-China Kuantan Industrial Park (MCKIP).
He said Malaysia’s reputation as a global and regional hub for manufacturing and services has managed to garner investments that will advance the country’s interests in high value-added, high technology, knowledge-intensive and innovation-based industries.