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23,977 new job opportunities expected across Malaysia's manufacturing, services, and primary sectors in 2023: MITI

23,977 new job opportunities expected across Malaysia's manufacturing, services, and primary sectors in 2023: MITI

The services sector surpassed all other sectors this Q1 in terms of approved investments, registering RM53.6bn.

As shared by the Ministry of Investment, Trade and Industry (MITI), Malaysia attracted RM71.4bn in approved investments in the first quarter of 2023 — and with 1,265 projects approved looking ahead, this is expected to generate 23,977 new job opportunities across the manufacturing, services, and primary sectors.

For a better overview, Malaysia continues to capture more foreign direct investments (FDI) than domestic direct investments (DDI). FDI contributed RM37.5bn, representing 52.5% of the total approved investments.

By market, the Ministry shared, Singapore took the lead with RM11.5bn, and the British Virgin Islands in second at RM7.1bn, followed closely by China at RM6.5bn. At the same time, Hong Kong and the Republic of Korea contributed RM2.9bn and RM2.5bn, respectively.

Notably, DDI accounted for RM33.9bn, representing 47.5% of the total approved investments, which MITI noted as a reflection of "domestic investors’ renewed confidence in Malaysia’s economic progress and prospects."

For approved projects by state, the top five states that attracted a significant portion of the approved investments for Q1 2023 were:

  • Kuala Lumpur (RM21.8bn),
  • Johor (RM10.6bn),
  • Selangor (RM7.4bn),
  • Perak (RM7.1bn), and
  • Sabah (RM6.3bn).

Minister of International Trade and Industry Tengku Zafrul Aziz elaborated: "All these will have positive spillover impact particularly on the SMEs in our domestic supply chain, and on the rakyat in terms of better-paying jobs, which will help support our economy in the face of various global challenges this year.”

The services sector ranked top in Q1 2023

The services sector surpassed all other sectors this Q1 in terms of approved investments, registering RM53.6bn, which accounted for 75.1% of the total approved investments, MITI shared. This represented a significant 226.8% year-on-year growth from Q1 2022 (RM16.4bn). The RM53.6bn also represents 1,058 approved projects, which are expected to create 12,051 new job opportunities.

Diving deeper within the services sector, the information & communications sub-sector stood out prominently, attracting approved investments valued at RM24.9bn, representing a substantial 46.5% share. Coming in second was the real estate sub-sector, securing RM15.5bn (28.9%). This was followed by distributive trade with RM6.7bn (12.5%), financial services with RM2.2bn (4.1%), and support services with RM1.8bn (3.4%).

The manufacturing sector remained resilient in Q1 2023

Over in manufacturing, Malaysia continued to attract a "healthy level of investments" in the manufacturing sector, with a substantial value of RM15.6bn, or 21.8% of the total approved investments. This commitment was evident through the approval of 192 manufacturing projects, slated to generate more than 11,900 new job opportunities.

A majority of the approved investments in the manufacturing sector were allocated to key industries, with transport equipment taking the lead (RM4.4bn, 28.2%). This was followed by:

  • machinery and equipment with RM2.6bn (16.6%),
  • basic metal products with RM2.3bn (14.7%),
  • electrical and electronics (E&E) with RM2.1bn (13.2%), and
  • non-metallic mineral products with RM1.6bn (10.3%).

Together, these industries accounted for a significant 83.1% of the total approved investments in the sector.

Meanwhile, Malaysia's primary sector drew investments valued at RM2.2bn in the first quarter of 2023.

As a whole, Malaysia’s investment landscape currently sees a total of 878 projects and proposed investments, amounting to RM35.9bn for pipeline projects, and RM150.4bn for lead projects.

The manufacturing sector took the lead with 78.8% (RM28.3bn) of pipeline projects, while the services sector accounted for 21.2% (RM7.6bn), showcasing a diversified investment portfolio.

Datuk Wira Arham Abdul Rahman, Chief Executive Officer of the Malaysian Investment Development Authority (MIDA), added: "This robust pipeline and lead project portfolio solidify Malaysia’s reputation as an attractive and thriving investment destination, fueled by its strategic location, robust infrastructure, skilled workforce, and supportive business policies.

"As the main Investment Promotion Agency in Malaysia, MIDA remains committed to fostering a conducive environment for businesses and investors, and these impressive figures reflect the confidence they have in Malaysia’s potential for long-term growth and success."

Moving forward, both MITI and MIDA aim to sustain this momentum by attracting new investments that are aligned to the objectives of the New Investment Policy, towards sustainable and inclusive economic growth for Malaysia, as highlighted.

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Lead image / Ministry of Investment, Trade and Industry (MITI) Facebook

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