KUALA LUMPUR, Nov 18
Malaysia experienced a significant surge in foreign investment, rising by 47.5% to RM150.8 billion during the first nine months of 2025. This increase notably outstrips regional trends, as reported by the Malaysian Investment Development Authority (MIDA).
Total approved investments across all sectors climbed to RM285.2 billion, marking a year-on-year increase of 13.2%. This growth was largely fueled by a remarkable 122% expansion in the services sector, which attracted the most investment.
The services sector led the charge, drawing in RM187.9 billion, with a notable fraction of these funds coming from international sources. Meanwhile, the manufacturing sector also saw robust foreign involvement, with approved investments totaling RM73.1 billion, representing nearly 78% of the sector’s overall funding.
Key projects in high-value industries—like semiconductors, electric vehicles, and critical minerals—illustrate Malaysia’s strategic pivot towards more valuable supply chains.
Among foreign investors, Singapore retained its position at the forefront with commitments of RM52.7 billion, followed by China and the United States.
Regionally, targeted economic initiatives have benefitted major states. Johor has capitalized on cross-border links via the Johor-Singapore Special Economic Zone, while Penang and Kedah have attracted advanced semiconductor and electronics ventures, bolstering the high-tech corridor in the northern region.
“Benchmark settings”
Datuk Seri Tunku Zafrul Abdul Aziz, the Minister for Investment, Trade and Industry, noted that this strong performance signals a growing preference among global investors for Malaysia due to its stability and long-term assurance.
“As global investors look at Southeast Asia, there’s a noticeable shift towards Malaysia. We aren’t merely competing within ASEAN; we’re setting the standard,” he remarked.
“By concentrating on the key objectives outlined in the New Industries Master Plan 2030, we’re attracting investments while also providing jobs and opportunities for skill enhancement, facilitating the shift towards a high-value, knowledge-based economy.”
MIDA CEO Datuk Sheikh Shamsul Ibrahim Sheikh Abdul Majid commented that the robust pipeline of projects and swift acceleration further confirm Malaysia’s stature as a favored investment hub.
