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Malaysia’s foreign investment surged 47pc in first nine months of 2025, Mida reports

Malaysia’s foreign investment surged 47pc in first nine months of 2025, Mida reports

KUALA LUMPUR, Nov 18 — Malaysia recorded a 47.5 per cent increase in foreign investment in the first nine months of 2025, reaching RM150.8 billion and significantly outpacing regional trends, according to new figures from the Malaysian Investment Development Authority (MIDA).

The strong foreign interest, driven by a massive 122 per cent jump in the services sector, propelled the country’s total approved investments to RM285.2 billion across all sectors, 13.2 per cent over the previous year.

The services sector was the star performer, attracting RM187.9 billion in total investments, with foreign inflows accounting for a significant portion. 

Manufacturing also saw solid foreign participation, with RM73.1 billion in approved investments making up nearly 78 per cent of the sector’s total.

Flagship projects in high-value industries like semiconductors, electric vehicles, and critical minerals underscored Malaysia’s strategic shift up the value chain.

Singapore remained the dominant foreign investor with RM52.7 billion in commitments, followed by China and the United States.

Geographically, key states reaped the benefits of targeted economic initiatives. Johor continued to leverage its cross-border linkages through the Johor-Singapore Special Economic Zone, while Penang and Kedah attracted advanced semiconductor and electronics projects, reinforcing the northern region’s high-tech corridor.

‘Setting the benchmark’

Investment, Trade and Industry Minister Datuk Seri Tengku Zafrul Abdul Aziz said the strong performance shows that global investors are increasingly choosing Malaysia for its stability and long-term certainty.

“When global investors look at Southeast Asia, they are increasingly choosing Malaysia. We are not just competing within Asean — we are setting the benchmark,” he said.

“Our focused execution of key missions under the New Industrial Master Plan 2030 is attracting investments, while delivering jobs and upskilling opportunities to power up our transition towards a high-value, knowledge-based economy.”

MIDA CEO Datuk Sikh Shamsul Ibrahim Sikh Abdul Majid added that a strong project pipeline and faster facilitation have cemented Malaysia’s position as a preferred investment destination.