On the domestic front, five states emerged as the leading investment destination: Johor (RM110.0 billion), Selangor (RM83.9 billion), Wilayah Persekutuan Kuala Lumpur (RM63.3 billion), Pulau Pinang (RM32.9 billion) and Kedah (RM27.8 billion), collectively accounting for 74.5% of total approved investments. <\/p>\n\n\n\n
![\"\"](\"https:\/\/malaysian-business.com\/wptest\/wp-content\/uploads\/2026\/03\/MIP-2.jpg\")
<\/figure>\n\n\n\n“Malaysia’s record RM426.7 billion in approved investments for 2025 is a milestone that belongs to every Malaysian. Through MITI and MIDA’s sustained efforts, we have not only achieved the highest investment approvals in our nation’s history but done so with the right quality. Nearly 245,000 jobs are being created, growth is reaching our Less Developed States, and our manufacturing sector is steadily climbing the value chain. What gives me equal confidence is the balance of this achievement. More than half of our approved investments came from domestic sources, a clear signal that Malaysian businesses believe in this country’s direction and future. At the same time, foreign investment surged by 20.9 per cent, reflecting sustained international confidence in Malaysia as a destination for long-term, high-quality capital. With the New Incentive Framework now in effect and the Thirteenth Malaysia Plan guiding our national ambitions, MITI and MIDA remain fully committed to ensuring that every ringgit invested delivers lasting and meaningful value for the\u00a0<\/strong>Rakyat<\/strong><\/em>.”<\/strong> \u25cf Real Estate: RM78.2 billion, 21.2% increase from RM64.5 billion in 2024, involving 1,123 projects across residential, serviced apartment, and commercial developments nationwide, including an integrated energy hub and deep-sea port project aligned with Malaysia\u2019s green energy transition under NIMP 2030 and NETR. The manufacturing sector recorded RM131.3 billion in approved investments in 2025, representing 30.8% of Malaysia\u2019s total approved investments, across 1,354 projects. Foreign investments (FI) accounted for RM100.6 billion (76.6%), while domestic investments (DI) contributed a substantial RM30.7 billion (23.4%). This continued inflow of capital underscores Malaysia\u2019s position as a competitive destination for hightechnology and advanced manufacturing activities. These investments are projected to generate 109,950 new jobs, with 82.3% (90,497 positions) earmarked for Malaysians. Nearly half of these positions (46.3%) fall within managerial, and technical categories, indicating a continued shift towards higher-skilled employment. <\/p>\n\n\n\n This workforce transformation is reflected in the Managerial, Technical, and Supervisory (MTS) Index, which measures the skill intensity in the manufacturing sector. In 2025, the MTS Index rose to 42.8% (representing 47,111 positions), marking 29.1% year-on-year increase from 41.6% in 2024. This progress supports Malaysia\u2019s goal under NIMP 2030 to build a more competitive and high-income workforce.<\/p>\n\n\n\n To support this momentum, MIDA\u2019s Special Taskforce on Talent Facilitation (STF-TF), comprising 17 ministries and academic institutions works to bridge the gap between evolving industrial needs and talent supply as investments move into higher-value activities.<\/p>\n\n\n\n This focus on higher-value activities is also reflected in key industrial sub-sectors. The E&E industry remains a cornerstone of Malaysia\u2019s manufacturing prowess, securing RM28.5 billion, and affirming its role in the global technology supply chain through AI and green technologies integration. The Chemicals and Chemical Products industry recorded RM24.9 billion in investments, underscoring its importance to Malaysia’s advanced industrial ecosystem.<\/p>\n\n\n\n Other industries contributing to the manufacturing sector\u2019s growth include: Malaysia\u2019s investment performance is measured not only by approvals but by implementation. Strategic platforms such as the National Committee on Investment (NIC), the Investment and Trade Coordination Action Committee, and the Invest Malaysia Facilitation Centre continue to assume a pivotal role in ensuring smooth project execution. MODERNISING THE INVESTMENT LANDSCAPE<\/strong> Malaysia recorded RM426.7 billion in approved investments for 2025, the highest level ever achieved. This represents an 11.0% increase from RM384.4 billion in 2024, marking continued growth in the country\u2019s investment performance. This achievement comes amid a cautious global climate. The International Monetary Fund (IMF), in its World Economic Outlook, projected global growth at 3.3% […]<\/p>\n","protected":false},"author":5,"featured_media":6946,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[34],"tags":[122,301,308,300,309,312,303,226,311,306,310,304,299,305,165,296,307,302,297,298],"class_list":["post-6944","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-general","tag-13mp","tag-aiinfrastructure","tag-aseantechhub","tag-datacentres","tag-digitaleconomy","tag-domesticinvestment","tag-ee","tag-ekonomimadani","tag-fdi","tag-greenenergytransition","tag-industrialdevelopmentact2026","tag-jobcreation","tag-malaysiainvestment","tag-manufacturingexcellence","tag-mida","tag-miti","tag-newincentiveframework","tag-nimp2030","tag-recordgrowth","tag-rm426b"],"_links":{"self":[{"href":"https:\/\/malaysian-business.com\/portal\/wp-json\/wp\/v2\/posts\/6944","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/malaysian-business.com\/portal\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/malaysian-business.com\/portal\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/malaysian-business.com\/portal\/wp-json\/wp\/v2\/users\/5"}],"replies":[{"embeddable":true,"href":"https:\/\/malaysian-business.com\/portal\/wp-json\/wp\/v2\/comments?post=6944"}],"version-history":[{"count":1,"href":"https:\/\/malaysian-business.com\/portal\/wp-json\/wp\/v2\/posts\/6944\/revisions"}],"predecessor-version":[{"id":6949,"href":"https:\/\/malaysian-business.com\/portal\/wp-json\/wp\/v2\/posts\/6944\/revisions\/6949"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/malaysian-business.com\/portal\/wp-json\/wp\/v2\/media\/6946"}],"wp:attachment":[{"href":"https:\/\/malaysian-business.com\/portal\/wp-json\/wp\/v2\/media?parent=6944"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/malaysian-business.com\/portal\/wp-json\/wp\/v2\/categories?post=6944"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/malaysian-business.com\/portal\/wp-json\/wp\/v2\/tags?post=6944"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}
\u00a0<\/strong>
\u2014 YB Tuan Sim Tze Tzin, Deputy Minister of Investment, Trade and Industry (MITI)<\/strong>
\u00a0<\/strong>
SERVICES SECTOR: SUSTAINING ECONOMIC MOMENTUM<\/strong>
The services sector secured RM281.3 billion in approved investments \u2013 65.9% of the national total \u2013 involving 7,004 projects and is projected to generate 134,926 new jobs, the largest share of total job creation.\u00a0
Domestic sources contributed 63.0% (RM177.2 billion), while foreign investment made up 37.0% (RM104.1 billion), representing a 28.7% year-on-year increase.\u00a0
\u00a0<\/strong>
Spearheading the Digital Frontier<\/strong>
The information and communication\u2074\u00a0sub-sector led the surge with RM152.9 billion. A lion\u2019s share of this approvals is driven by digital investments in Artificial Intelligence (AI), Big Data, data centres and cloud computing.\u00a0
Data centres are projected to contribute RM14.1 billion to Malaysia’s economy in 2025. And their energy demands are accelerating our transition to renewable energy, driving the expansion of Large-Scale Solar projects toward our goal of 70 per cent renewable energy by 2050\u2075.
According to UNCTAD, data centres accounted for more than one-fifth of all global greenfield project value in 2025, with investments exceeding USD270 billion worldwide, driven by demand for artificial intelligence and expanding digital networks\u2076. France, the United States, and South Korea were among the leading host countries, while Malaysia was identified alongside Brazil, India, and Thailand as an emerging destination attracting large-scale digital investments.
MITI and MIDA have moved on two fronts:
\u25cf\u00a0The Data Centre Task Force (DCTF)<\/strong>, established since February 2025 as a\u00a0joint platform<\/strong>\u00a0between MITI and the Ministry of Digital, streamlines the industry\u2019s trajectory to ensure Malaysia remains a competitive and investorfriendly regional digital hub.
\u25cf Enhancements to the\u00a0Digital Ecosystem Acceleration (DESAC)<\/strong>\u00a0scheme, have introduced rigorous sustainability benchmarks, including Power Usage Effectiveness (PUE) and Water Usage Effectiveness (WUE) metrics, while\u00a0prioritising local ecosystem development<\/strong>\u00a0through greater participation of local vendors, the creation of high-value jobs, and closer collaboration with universities and technical institutes in IT and engineering to support the digital industry.
Beyond digital investments, the services sector’s growth was further supported by strong performances in:<\/p>\n\n\n\n
\u25cf Utilities\u2077: RM13.7 billion
\u25cf Support Services\u2078: RM12.6 billion
\u25cf Distributive Trade: RM10.8 billion
<\/strong>
MANUFACTURING SECTOR: ADVANCING THE VALUE CHAIN<\/strong><\/p>\n\n\n\n
<\/strong>
A Talent-Driven Industrial Evolution<\/strong><\/p>\n\n\n\n
\u25cf Transport Equipment \u2013 RM14.9 billion
\u25cf Basic Metal Products \u2013 RM11.1 billion
\u25cf Machinery and Equipment (M&E) – RM11.0 billion
INDUSTRIAL CLUSTERS: BUILDING CRITICAL MASS<\/strong>
\u00a0<\/strong>
Malaysia\u2019s key industrial clusters continue to gain depth and momentum, evolving into strong, self-reinforcing ecosystems that attract quality investments.\u00a0Pulau Pinang\u2019s well-established E&E cluster<\/strong>\u00a0secured 83 projects worth RM11.3 billion, with 78% driven by foreign investors.\u00a0 This reflects sustained confidence in the state\u2019s five-decade strength in electronics and its critical role in global technology supply chains.\u00a0
The\u00a0automotive cluster in Tanjong Malim<\/strong>\u00a0recorded six projects valued at RM3.6 billion, including new investments in electric and hybrid vehicle manufacturing. This reinforces Malaysia\u2019s growing presence in next-generation mobility and clean transportation technologies.
Meanwhile, the southern\u00a0petrochemical cluster<\/strong>\u00a0spanning Pengerang, Tanjung Langsat and Pasir Gudang attracted nine projects worth RM7.5 billion, including Sustainable Aviation Fuel (SAF) production \u2013 positioning Malaysia in a niche expected to grow as aviation decarbonisation pressures mount.\u00a0
PRIMARY SECTOR DEMONSTRATES OPPORTUNITY<\/strong><\/p>\n\n\n\n![\"\"](\"https:\/\/malaysian-business.com\/wptest\/wp-content\/uploads\/2026\/03\/MIP-3.jpg\")
<\/figure>\n\n\n\n
\u00a0<\/strong>
The primary sector recorded RM14.2 billion in approved investments, representing 3.3% of the total approvals. Across 32 projects, the sector is projected to generate over 28 new jobs, with investments concentrated in mining (RM14.1 billion) and agriculture (RM51.4 million). While modest in scale, the sector reflects continued strategic interest in resource-based and upstream activities.
INCLUSIVE GROWTH: REACHING BEYOND THE TRADITIONAL CENTRES<\/strong>
\u00a0<\/strong>
The Less Developed States (LDS) \u2013 Perlis, Kedah, Terengganu, Kelantan, Sabah, and Sarawak \u2013 secured 941 projects worth RM66.0 billion in 2025, representing 15.5% of total national approved investments, and projected to create 23,617 jobs.\u00a0
Kedah led with RM27.8 billion, driven primarily by manufacturing activities, followed by Sabah (RM14.6 billion) and Sarawak (RM14.2 billion). Although disparities remain, the investment trajectory in these states is consistent with the National Investment
Aspirations\u2019 emphasis on inclusiveness and the priorities under the 13th Malaysia Plan (2026-2030).
\u00a0<\/strong>
CONTINUED FOCUS ON QUALITY AND SUSTAINABLE INVESTMENT OUTREACH<\/strong>
Malaysia\u2019s drive to attract quality and sustainable investments continues across global markets. From 2025 to date, MITI and MIDA have undertaken 13 high-level overseas missions to key markets including the United States of America, several European countries, and the People\u2019s Republic of China,\u00a0<\/strong>complemented by strategic working visits led by the Prime Minister, YAB Dato\u2019 Seri Anwar Ibrahim. These engagements have opened new pathways for investment opportunities worldwide.
This proactive outreach is reflected in Malaysia\u2019s current investment landscape, with a strong\u00a0pipeline<\/strong>\u00a0of high-potential projects, reinforcing its position as a competitive investment destination. As of 2 February 2026, MIDA is overseeing 172 pipeline projects with proposed investments totalling RM29.1 billion.
Of these, 101 projects are in the services sector (RM18.4 billion), while 71 projects are in the manufacturing sector (RM10.7 billion).
Additionally, RM65.5 billion in high-potential investment\u00a0leads<\/strong>\u00a0are currently under active negotiation by MIDA, reflecting sustained investor confidence in Malaysia\u2019s economic fundamentals.
\u00a0<\/strong>
IMPLEMENTATION OF APPROVED MANUFACTURING PROJECTS<\/strong><\/p>\n\n\n\n
MITI and MIDA continue to work closely with federal and state stakeholders to facilitate and monitor project implementation.
Between 2021 and 2025, the National Committee on Investment<\/strong> approved 4,848<\/strong> manufacturing projects, of which:
\u25cf 84.9%<\/strong> have reached various implementation stages, ranging from production to factory construction and machinery installation.
\u25cf 12.0%<\/strong> are in the planning phase, focusing on site selection and consultations with developers.
\u25cf Only 3.1%<\/strong> of projects were abandoned, highlighting Malaysia\u2019s strong project realisation rate.
Annual data shows that:
\u25cf More than 90%<\/strong> of approved manufacturing projects in 2021 <\/strong>and 2024 <\/strong>have been implemented.
\u25cf Projects approved in 2025<\/strong> have recorded a 62.2%<\/strong> implementation rate, in line with the typical 18 to 24 months development cycle for completion, depending on project complexity.
\u201cMalaysia\u2019s investment success is no accident \u2013 it is the product of clear policies, consistent institutions, and the reforms we put in place since early 2023. With the MADANI Economic Framework, NIMP 2030, and MITI\u2019s policy architecture giving investors certainty, and with 84.9% of approved manufacturing projects already realised or underway \u2014 we have shown how Malaysia can stay resilient even as the world turns uncertain. The new facilities, advanced technologies, and quality jobs created in recent years reflect our whole-of-nation capability to turn investor confidence into industrial growth, while maintaining Malaysia\u2019s position as a competitive and resilient investment destination.\u201d<\/strong>
<\/strong>
\u2014 YM Tengku Datuk Seri Utama Zafrul Aziz, Chairman of MIDA and Senior Political Advisor to the Prime Minister.<\/strong><\/p>\n\n\n\n
<\/strong>
Malaysia’s record investment performance is being matched by reforms to strengthen its investment architecture. The reforms aim to ensure that Malaysia\u2019s future growth is defined not only by volume, but by quality and long-term economic impact:
\u25cf New Incentive Framework (NIF):<\/strong> Effective 1 March 2026, the NIF shifts Malaysia toward an outcome-based model. It prioritises high-impact investments that meet specific National Investment Aspirations (NIA). The framework begins with the manufacturing sector, with a phased rollout to the services sector scheduled for the second quarter of 2026.
\u25cf Industrial Development Act 2026: <\/strong>Replacing the Industrial Coordination Act 1975, this represents a generational update of Malaysia’s industrial regulatory framework, introducing a more agile, transparent and facilitative approach to ensure regulation keeps pace with technological advancement and evolving investor expectations.
\u25cf Climate Change Bill: <\/strong>Anticipated to be tabled in the current parliamentary session, the Bill will establish the legal architecture for Malaysia’s transition to a low-carbon economy, providing the governance clarity and market signals that sustainabilityconscious investors increasingly require.
\u25cf MIDA Transformation Agenda:<\/strong> MIDA continues to strengthen its role in coordinating the end-to-end investor journey and driving investment policies that support a sustainable and competitive industrial ecosystem.
These initiatives are engineered to reinforce Malaysia\u2019s competitiveness, ensuring that record-breaking investment inflows translate into tangible economic benefits and highquality opportunities for the Rakyat<\/em>.
A FUTURE BUILT ON RESILIENCE, INNOVATION, AND ECONOMIC PROSPERITY<\/strong>
<\/strong>
Malaysia\u2019s transformative investment journey represents a bold step towards building a resilient, innovative, and prosperous future. With a robust policy framework and unwavering investor confidence, the nation is poised to strengthen its global standing as a premier, world-class investment destination.
\u201cAt MIDA, our focus goes beyond attracting investments, it is about ensuring that approved projects are implemented efficiently and successfully on the ground. Over the years, we have strengthened our facilitation mechanisms, enhanced coordination across government agencies, and deepened our engagement with investors to support the timely realisation of projects. These efforts reflect<\/strong>
MIDA\u2019s ongoing evolution into a more agile and responsive investment promotion agency, committed to partnering with investors throughout their journey and delivering lasting value to Malaysia\u2019s economy.\u201d<\/strong>
\u2014 Datuk Sikh Shamsul Ibrahim Sikh Abdul Majid, CEO of MIDA<\/strong><\/p>\n","protected":false},"excerpt":{"rendered":"