Malaysia's FDI Jumps 33% To RM51.5 Billion In 2024
According to the latest report from the Department of Statistics Malaysia (DOSM), the Services sector emerged as the primary driver of FDI flows in 2024, attracting a net inflow of RM39.4 billion. This was followed by the Manufacturing sector with RM9.1 billion and Mining & Quarrying with RM5.3 billion.
Within the Services sector, the bulk of investments were channeled into Information & Communication and Financial & Insurance/Takaful activities. In the Manufacturing sector, the Electrical & Electronic products and Non-metallic mineral products, basic metal & fabricated metal products sub-sectors were the main beneficiaries. The leading sources of these FDI flows were Singapore, Hong Kong, and the United States of America (USA).
FDI Position and Sectoral Contributions
In terms of FDI position at the end of 2024, the Services sector continued to hold the largest share, valued at RM524.8 billion. This was largely fueled by sustained investments in Financial & Insurance/Takaful activities, Information & Communication, and Wholesale & Retail Trade. The Manufacturing sector remained the second-largest contributor to the FDI position, amounting to RM400.8 billion, predominantly driven by the Electrical and Electronic products sub-sector. Echoing the FDI flows, Singapore, Hong Kong, and the USA were also the largest investor countries for FDI position.
Income Generation by Foreign Companies
The Manufacturing sector maintained its lead in generating income for foreign companies in Malaysia, amounting to a significant RM54.6 billion in 2024, up from RM41.8 billion in the previous year. The Services sector followed, contributing RM36.0 billion, largely supported by robust performance in Financial & Insurance/Takaful activities. Investors from the USA, Singapore, and Japan recorded the highest earnings from their operations in Malaysia during 2024.
The strong FDI performance in 2024 underscores Malaysia's continued attractiveness as an investment destination, with a growing emphasis on the services sector complementing its traditional manufacturing stronghold. This diversified inflow bodes well for the nation's economic resilience and growth trajectory. Related
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