Malaysia - Investment Performance 2011 - Malaysian Industrial ...

investments accounted for the largest
share of investments with RM48.2 billion
or 74.8 per cent. It is important to note
that foreign investments approved had
made a significant leap from RM4.1
billion in 2010 to RM16.2 billion or 25.2
per cent of total investments in 2011.
This was mainly due to several
multinational companies (MNCs) which
have chosen Malaysia as their global
operations hub. These projects have
substantial investments with significant
spin-off effects on the economy. Within
the services sector, the real estate subsector
continued to be the leading
contributor with RM16.9 billion worth
of investments approved followed by the
transport, global operations hub, energy
and telecommunications sub-sectors.
Further liberalisation of the services
sub-sectors in 2012 is expected to
enhance the level of competitiveness of
the services sector in the country which
has been identified by the Government
to contribute significantly to the ETP.
The manufacturing sector is expected to
remain a significant contributor to growth.
In 2011, Malaysia continued to attract
high levels of quality investments in the
manufacturing sector, which reflects the
country’s competitiveness as a preferred
location for high technology investments
in the region. A total of 846 projects
were approved in 2011 with investments
amounting to RM56.1 billion compared
with 910 projects involving investments
of RM47.2 billion in 2010. Malaysia
remained a competitive destination for
FDI in the region and continued to attract
encouraging levels of foreign investments
in the manufacturing sector. Foreign
investments in projects approved in
2011 amounted to RM34.2 billion (61%)
compared with RM29.1 billion in 2010. In
line with the call by the Government for
domestic investors to assume a prominent
role under the ETP, domestic investments
approved in the manufacturing sector
increased from RM18.1 billion in 2010
to RM21.9 billion in 2011. Domestic
investments accounted for 39 per cent
of total approved investments in 2011.
The primary sector accounted for RM28.1
billion of approved investments in 2011.
Foreign investments in the primary sector
amounted to RM16 billion (56.9%) while
domestic investments totalled RM12.1
billion (43.1%). The mining sub-sector
is the leading sub-sector with approved
investments reaching RM26.7 billion in
44 projects. The mining sub-sector is
dominated by the oil and gas exploration
activities. The strong performance of the
oil and gas sub-sector, which has been
identified as one of the NKEAs indicates
that Malaysia is well poised to become
one of the leading oil and gas hubs
in the region. The rest of the primary
sector is made up of the plantation and
commodities sub-sector with investments
amounting to RM989.5 million and the
agriculture sub-sector which registered
investments totalling RM417.5 million.
Malaysia - investMent PerforMance 2011
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