Foreign Direct Investment (FDI) in Malaysia registered a lower net inflow of RM40.4 billion in 2023 compared to RM75.4 billion in the previous year.
The Department of Statistics in its report said in terms of position, FDI reached to RM926.0 billion as at the end of 2023 (2022: RM878.4 billion). Meanwhile, the foreign companies in Malaysia generated a total income of RM89.1 billion, a decreased from RM106.6 billion in 2022.
Services sector was the main contributor to FDI flows in 2023, followed by Manufacturing and Mining & quarrying sector. Within the Services sector, investments were primarily concentrated in Information and communication; and Financial & insurance/takaful activities. Meanwhile, the Manufacturing sector was mostly involved in Electrical, transport equipment and other manufacturing; and Non-metallic mineral products, basic metal and fabricated metal products subsectors. The main countries for FDI flows were Singapore, Hong Kong and Japan.
The FDI position stood at RM926.0 billion as at the end of 2023, whereby the Services sector accounted for the majority precisely in Financial & insurance/takaful activities. The second highest contributor was the Manufacturing sector especially in Electrical, transport equipment, and other manufacturing subsector. Singapore, Hong Kong and the USA were the largest investor countries for FDI position.
Investment income decreased from RM106.6 billion to RM89.1 billion in 2023. Manufacturing and Services were the main sectors, while investors from the USA, Singapore and Japan gained the highest earnings in 2023.
