Mida: Malaysia secures RM218.5b in approved investments in 1H 2026, up 11.7pc
KUALA LUMPUR, Aug 28 — Malaysia secured RM218.5 billion in approved investments in the first half of 2026 (1H 2026), up 11.7 per cent from RM195.5 billion in the same period last year, according to the Malaysian Investment Development Authority (Mida).
The investments involved 2,746 projects across the services, manufacturing and primary sectors and are expected to create 99,030 jobs, an increase of 8.4 per cent year-on-year (y-o-y).
In a statement today, Mida said the 1H 2026 approvals amounted to 50.7 per cent of the RM431.1 billion approved for the whole of 2025.
“The performance stands out commendably against a softening global backdrop. The International Monetary Fund’s July 2026 World Economic Outlook put world growth at three per cent for the year, while Malaysia’s economy is projected to expand 4.7 per cent, ahead of both the global and regional averages,” it said.
Mida said foreign investments (FI) accounted for RM126.9 billion, or 58.1 per cent of total approved investments, up 18.5 per cent year-on-year, while domestic investments (DI) contributed RM91.6 billion, or 41.9 per cent, an increase of 3.5 per cent.
“Collectively, the figures reflect continued confidence from both international and Malaysian investors,” it said.
Mida noted that the United States was the largest source of FI at RM33.1 billion, followed by Singapore at RM25.9 billion, Japan at RM22.3 billion, China at RM16.5 billion and the Cayman Islands at RM4.1 billion.
“Together these five top sources supplied more than 80 per cent of approved FI,” it said.
Mida highlighted that Selangor led approved investments with RM70 billion across 835 projects, driven by digital investments in areas such as artificial intelligence (AI), big data analytics, cybersecurity, financial technology, cloud computing and the Internet of Things (IoT).
“Johor followed with RM59.4 billion, supported by the Johor-Singapore Special Economic Zone (JS-SEZ) and the upcoming Rapid Transit System (RTS) Link, while Kuala Lumpur recorded RM26.6 billion, including residential and serviced apartment developments linked to urban growth and transit-oriented development.
“Penang secured RM20.2 billion, led by advanced manufacturing and semiconductor investments, while Sarawak recorded RM10.8 billion, mainly from offshore oil and gas exploration projects,” it said.
Mida said the services sector attracted the largest share of approved investments at RM149.6 billion, up 21 per cent y-o-y, involving 1,750 projects expected to create 34,475 jobs.
“FI in the services sector rose 66.7 per cent to RM86.9 billion, while DI contributed RM62.7 billion, or 41.9 per cent, creating more opportunities for local businesses and suppliers to participate in growing industries,” it said.
Information and communications led services sector growth, with approved investments rising 68.2 per cent to RM103.3 billion, while data centre and cloud computing projects accounted for RM95.8 billion, or close to 44 per cent of total approved investments during the period, amid growing regional demand for AI computing power, Mida said.
The five largest industries accounted for 76.9 per cent of manufacturing approvals, with machinery and equipment and food manufacturing among the fastest-growing, rising 44.8 per cent and 40.9 per cent, respectively.
Nearly one-third, or 302 approved manufacturing projects, plan to export at least 80 per cent of their output, with the number of such projects rising 57.3 per cent y-o-y.
Electrical and electronics, machinery and equipment, fabricated metal products, plastic products, transport equipment and food manufacturing together accounted for 70.9 per cent of the 302 export-oriented projects.
Mida chairman Tengku Datuk Seri Zafrul Abdul Aziz said the half-year performance was driven by the services and manufacturing sectors, with both reflecting the quality and scale of investments.
“Investor confidence has also been reinforced by structural reforms that lifted Malaysia’s standing in the International Institute for Management Development (IMD) World Competitiveness Ranking 2026, where Malaysia ranked 15th out of 70 economies, its best placing in more than a decade.
“Guided by the New Industrial Master Plan 2030, Mida will continue to prioritise and implement investments that transfer technology, deepen local vendor participation and create high-value jobs for Malaysians,” he said.
Mida also said that as of Aug 10, 2026, it was reviewing 227 proposals worth RM72.1 billion, comprising 128 services projects worth RM36.5 billion and 99 manufacturing projects worth RM35.6 billion, while a further RM58.4 billion in high-potential leads was under discussion.
Mida chief executive officer Datuk Sikh Shamsul Ibrahim Sikh Abdul Majid said securing investment commitments was only half the task, while the other half was turning those commitments into operating plants and jobs on the ground, where Mida’s facilitation work mattered most.
“Through the Invest Malaysia Facilitation Centre and close coordination across ministries and agencies, we help investors clear regulatory and implementation hurdles quickly, which is reflected in the 86.3 per cent of manufacturing projects approved since 2021 that have already moved into implementation.
“Our engagement does not end at approvals as we stay involved to handhold projects and, through #InvestLokal, deepen the participation of small and medium enterprises and local vendors, so that each ringgit committed becomes real capacity and skilled employment for Malaysians,” he added.
