Malaysia’s Investment Performance Surges in First Half of 2025
According to the Malaysian Investment Development Authority (MIDA), Malaysia has successfully secured a significant total of RM190.3 billion in approved investments during the first half of 2025. This figure represents an impressive 18.7% increase compared to the same period in the previous year. The Minister of Investment, Trade and Industry, Tengku Datuk Seri Zafrul Aziz, emphasized that this robust growth is a clear reflection of the unwavering trust that both foreign and domestic investors have in Malaysia’s clear and consistent policies and its long-term industrial reform agenda. He noted that these strategic initiatives have been instrumental in bolstering Malaysia’s strong economic fundamentals, allowing the country to remain resilient despite a challenging global economic environment. The minister also stated that his ministry, along with MIDA, is working in close collaboration with other relevant government ministries and agencies to ensure that these investment commitments are implemented quickly and efficiently to deliver tangible and meaningful economic results for the country.
Growth Across Sectors and Key Investor Profiles
The approved investments, which are spread across 3,011 projects in the manufacturing, services, and primary sectors, are projected to create 89,294 new jobs. This highlights Malaysia’s capacity to convert investment promises into tangible economic benefits. Foreign direct investments, in particular, saw a significant surge of 43.5% year-on-year, driven by strong growth in the services sector, which saw a remarkable 100.7% increase, as well as double-digit growth in both the manufacturing and primary sectors. The data from MIDA shows that Singapore was the leading source of foreign investment, contributing RM43.4 billion, followed by China with RM23.4 billion, and the United States with RM10.4 billion. Domestically, Johor led the states with the highest value of approved investments at RM56.0 billion, followed by Selangor, Kuala Lumpur, Penang, and Sabah. This widespread investment demonstrates that Malaysia’s strategic focus on key sectors, as outlined in the National Investment Aspirations (NIA), is attracting high-quality projects that are well-aligned with the nation’s long-term development goals.
Pro-Business Policies Drive Implementation and Future Outlook
Datuk Sikh Shamsul Ibrahim Sikh Abdul Majid, the CEO of MIDA, highlighted the resilience of Malaysia’s economy in attracting investments, noting that the country’s economy expanded by 4.4% in the second quarter of 2025 despite global economic turbulence. He affirmed that the current investment momentum reflects the strength of Malaysia’s economic fundamentals and the high level of trust investors have in its long-term direction. To ensure the smooth implementation of these projects, MIDA operates the Invest Malaysia Facilitation Centre, a one-stop-shop that brings together various government agencies to streamline decision-making and remove bureaucratic bottlenecks. This proactive approach has resulted in a high project implementation rate, with over 85% of manufacturing projects approved since 2021 already being implemented. Looking ahead, Malaysia’s investment outlook remains robust, with a strong pipeline of 385 potential projects valued at RM22.5 billion. MIDA is also in advanced discussions for an additional RM103.8 billion worth of high-impact investments, signaling sustained investor confidence in the nation’s pro-business environment and its strategic economic direction.
