MALAYSIA has marked a robust start to 2025, drawing in RM89.8 billion in approved investments during the first quarter, a 3.7 per cent increase from the previous year, defying a challenging global economic uncertainty.
This substantial influx of capital is poised to create over 33,300 new employment opportunities across the manufacturing, services, and primary sectors.
The Malaysian Investment Development Authority (MIDA), in a statement today, announced that these investments, spread across 1,556 projects, are anticipated to generate more than 33,300 new employment opportunities for Malaysians.
MIDA’s statement also highlighted that: "The results reflect continued investor confidence in the country’s clear policies and long-term fundamentals, bucking the trend of cautious international capital flows due to geopolitical and macroeconomic volatility, and the intensifying global competition for fresh investments."
Foreign investments (FIs) constituted a significant portion of this total, contributing RM60.4 billion, or 67.3 per cent, while domestic investments (DIs) accounted for RM29.4 billion, or 32.7 per cent.
Investment, Trade and Industry Minister Tengku Datuk Seri Zafrul Aziz commented on the quality of these new jobs, noting the increase in the Managerial, Technical, and Supervisory (MTS) index.
He stated that the index rose to 46.3 per cent from 44.2 per cent in the same quarter last year, reflecting "the country’s success in creating higher-skilled, better-paying jobs."
"With a better integrated ASEAN economy, which we are working hard on as ASEAN chair, we are also paving the way for Malaysia’s continued positioning as a manufacturing and services hub to this fast-growing 680-million strong region."
Looking ahead, the Minister acknowledged that the investment environment in 2025 is expected to remain challenging due to "continued geopolitical and macroeconomic headwinds from the US-China trade war."
Nevertheless, he expressed optimism, stating, "Nonetheless, although major markets’ protectionist policies and supply chain frictions continue to weigh in on companies’ investment decisions, Malaysia’s clear policies should be able to attract more investments from Asia’s growing economy, which is expected to expand to about 42 per cent of global gross domestic product by 2040."
Datuk Sikh Shamsul Ibrahim Sikh Abdul Majid, Chief Executive Officer of MIDA, emphasised that the projects secured for 1Q 2025 not only bring in valuable jobs and business opportunities but also "supported the national effort to build a more diversified and resilient economy."
He further affirmed MIDA's commitment to ensuring Malaysia's continued appeal to high-performing companies: "To remain a choice location for high-performing companies, we will strengthen our local ecosystem as enablers and prepare our workforce to seize new job and leadership opportunities."
He added, "By ensuring Malaysia remains relevant in global value chains, we can attract and anchor investments that benefit our economy, enterprises and people for the long haul."
As of June 10, 2025, MIDA is actively managing a robust pipeline of proposed projects, collectively valued at RM48.5 billion.
The services sector leads this pipeline with 683 projects amounting to RM27.6 billion, while the manufacturing sector contributes RM20.9 billion across 89 projects. Additionally, MIDA is currently negotiating an "additional RM59.3 billion in high-potential investment leads."
These figures, MIDA stated, "signal not only a healthy appetite for investment but also a growing confidence in Malaysia’s economic fundamentals and policy direction." - June 11, 2025
