MINISTER OF FINANCE MALAYSIA
Malaysia Continues To Be An Attractive Investment Destination As Total FDI Stock In Malaysia Rose To RM667.5 Billion For The Second Quarter Of 2019 From RM605.1 Billion A Year Ago
The International Investment Position (IIP) document published by the Department of Statistics Malaysia (DOSM) shows that total stock of foreign direct investment (FDI) in Malaysia rose by 10.3% to RM667.5 billion in the second quarter of 2019, from RM605.1 billion a year ago. The steady rise in total FDI stock shows the continuing attractiveness of Malaysia as an international investment destination, amid rising trade tensions across the world.
Sustained growth prospect attracts FDI
Sustained economic growth is one of the reasons behind rising FDI stock. The Malaysian GDP during the same quarter expanded 4.9% year-on-year, an acceleration from 4.5% growth in the first quarter of 2019, at a time when various regional economies are experiencing synchronised growth slowdown. The 4.9% GDP quarterly growth is better than market expectations of 4.7% as compiled by Bloomberg.
The stronger than expected second quarter performance has convinced Fitch to revise its 2019 GDP growth projection for Malaysia upward to 4.6% from a lowly 4.2%. The Government expects the GDP to expand 4.5%-5.0% this year, based on the first half-year trend.
MIDA shows approved FDI is surging in the first half of 2019
The International Investment Position and the Balance of Payments define FDI as lasting investment made by foreign parties into domestic companies giving the former lasting controlling stake. This adheres to the definition provided by the International Monetary Fund (IMF).
It is not only definition available however, and the Malaysian Investment Development Authority (MIDA) defines FDI as investment into projects. Furthermore, approved FDI functions as a leading indicator to actual FDI as defined by MIDA.
Last week, MIDA announced that approved FDI across all sectors rose 97.2% to RM49.5 billion in the first half of 2019, from RM25.1 billion in the same period last year.
Additionally, approved manufacturing investment rose by 74.2% to RM33.1 billion during the first half of 2019, from RM19.0 billion in the same period last year. Out of the RM33.1 billion investment, RM25.1 billion was approved manufacturing FDI. RM11.7 billion came from the United States, making the US as the biggest source of approved manufacturing FDI during the period. China was the second biggest source with RM4.8 billion. Meanwhile, Singapore was third with RM3.1 billion and Japan was fourth with RM2.1 billion (Table 1).
MIDA states that the RM33.1 billion approved manufacturing investment would create 30,449 jobs in the near future. The Government will maintain its business-friendly approach to attract investment into the country and create quality jobs for all Malaysians.
Lim Guan Eng
Minister of Finance
Ministry of Finance Malaysia
20 August 2019
Media statement on MOF’s official website: https://is.gd/hSp6j8
Malaysia remains attractive to foreign investors
Malaysia continues to be an attractive investment destination as total stock of foreign direct investment (FDI) rose by 10.3% to RM667.5bil in the second quarter of 2019, compared with RM605.1bil a year ago.
Finance Minister Sdr Lim Guan Eng said the steady rise in total FDI stock showed the continuing attractiveness of Malaysia as an international investment destination amid rising trade tensions across the world.
“Sustained economic growth is one of the reasons behind rising FDI stock, ” he said in a statement yesterday.
Sdr Lim said Malaysia’s gross domestic product (GDP) for the quarter expanded 4.9% year-on-year, an acceleration from 4.5% growth in the first quarter of 2019, at a time when various regional economies are experiencing synchronised growth slowdown.
The 4.9% GDP quarterly growth was better than market expectations of 4.7% as compiled by Bloomberg. According to Sdr Lim, the International Investment Position and the Balance of Payments defined FDI as lasting investment made by foreign parties into domestic companies giving the former lasting controlling stake and this adhered to the definition provided by the International Monetary Fund.
Last week, the Malaysian Investment Development Authority announced that approved FDI across all sectors rose 97.2% to RM49.5bil in the first half of 2019, from RM25.1bil in the same period last year. Sdr Lim said approved manufacturing FDI rose by 74.2% to RM33.1bil during the first half of 2019, from RM19bil a year ago.
Of the investment, RM11.7bil came from the United States, making it the biggest source of approved manufacturing FDI during the period, followed by China (RM4.8bil), Singapore (RM3.1bil) and Japan (RM2.1bil).
Jumlah Stok Pelaburan Langsung Asing (FDI) Malaysia Meningkat 10.3 Peratus: Lim Guan Eng
Jumlah stok pelaburan langsung asing (FDI) Malaysia meningkat 10.3 peratus kepada RM 667.5 bilion dalam suku kedua 2019, berbanding RM605.1 bilion, tahun lalu.
Menteri Kewangan Sdr Lim Guan Eng menerusi kenyataan medianya berkata negara masih menjadi destinasi pelaburan antarabangsa, ketika dunia dilanda perang perdagangan.
Prestasi FDI itu dinyatakan dalam Dokumen Kedudukan Pelaburan Antarabangsa yang diterbitkan Jabatan Perangkaan Malaysia.
Pertumbuhan ekonomi mampan merupakan antara faktor penyumbang kepada peningkatan stok FDI negara.
Dalam suku yang sama, KDNK Malaysia berkembang 4.9 peratus tahun-ke-tahun, lebih pesat berbanding pertumbuhan 4.5 peratus untuk suku pertama 2019.
Kadar pertumbuhan itu juga melebihi jangkaan pasaran 4.7 peratus, seperti yang disasar Bloomberg.
Sekaligus meyakinkan badan penarafan Fitch Rating menyemak naik unjuran pertumbuhan KDNK tahun ini kepada 4.6 peratus, daripada unjuran asal 4.2 peratus.
Kerajaan menjangkakan KDNK tahun ini berkembang antara 4.5 dan 5.0 peratus tahun ini, berdasarkan trend positif separuh pertama tahun ini.
Berita daripada laman rasmi Kementerian Kewangan Malaysia: https://www.treasury.gov.my/index.php/galeri-aktiviti/akhbar/item/5435-rtm-jumlah-stok-pelaburan-langsung-asing-fdi-malaysia-meningkat-10-3-peratus-lim-guan-eng.html