The geographical location and way into a vast market of over 600 million people make Malaysia a great business place. Malaysia has seen a surge of progress, since its borders were opened at the start of the year, and now the nation presents an opportune moment to capitalize on its potentialities that await and remain purposeful in anticipation of a brighter future.
Taking into consideration its attractive investment environment, Malaysia has become a favorable and top choice for regional and global businesses. From January to September 2022, the country has approved $41.7 billion worth of investments in manufacturing ($14 billion), services ($24.4 billion), and primary sectors ($3.3 billion), which is an increase of 2.5 percent as compared to the same period in 2021. Once again, foreign direct investment (FDI) proved to be the major driver of total approved investment in the first nine months of the year. A remarkable $28.1 billion is being invested, or 67.5 percent, and it is a 15 percent increase from the same period last year. Domestic Direct Investments (DDI) accounted for the remaining $13.6 billion, or 32.5 percent.
The approved investments over this period are estimated to generate 98,414 new jobs in Malaysia. It will further offer a much-needed boost to the post-pandemic economic recovery. The domestic industry of Malaysia has witnessed a great benefit from the presence of global companies that have extended their operations to the country, as Malaysian businesses strive to provide high-quality products and servicesreat benefit from the presence of global companies that have extended their operations to the country, as Malaysian businesses strive to provide high-quality products and services. This has become a major boon for the economy of the nation because it is allowing greater development and growth.
Chief Executive Officer at Malaysian Investment Development Authority (MIDA), Datuk Wira Arham Abdul Rahman, said that Malaysia is a thriving business hub with a solid business ecosystem offering the perfect environment for investors. Malaysia is well-equipped with numerous incentives and facilities to support and promote business growth.The nation is poised to become the next major economic hub.
The 2021 Kearney Global Services Location Index has identified Malaysia as the third most attractive global business services location. The service sector continues to be the most prominent contributor to the investments approved during the first nine months of the year. This shows that the nation is on the right path toward success.
In the manufacturing sector too, Malaysia’s strength is continuing. The booming electrical and electronic industry of Malaysia produced an impressive $4.9 billion for the period from January to September this year. This demonstrates remarkable capabilities in this sector in Malaysia.
Malaysia is thriving to establish itself as a leading digital hub in the region because the digital ecosystem is experiencing a rise in investments due to the worldwide shift to digitalization and industry, with projects including data centers, dark fibre, submarine cables, 5G broadband, big data analytics, cloud computing, artificial intelligence (AI), and so on. The Digital Investment Office (DIO) was jointly established by the MIDA and the Malaysia Digital Economy Corporation (MDEC) in order to bring greater efficiency to digital investments in Malaysia.