Malaysia records RM51.5bn in foreign direct investment inflows for 2024

This growth was led by inflows into services, high-tech manufacturing, and green investments, driving job creation. Key investors included Singapore, Hong Kong, and the US.

Malaysia recorded a stronger net inflow of RM51.5bn in foreign direct investment (FDI) in 2024, an increase from RM38.6bn in the previous year, according to the Department of Statistics Malaysia (DOSM).

As of the end of 2024, Malaysia’s total FDI position stood at RM995.5bn, rising from RM924.0bn in 2023. Meanwhile, foreign companies operating within the country generated a total income of RM99.8bn, up from RM88.4bn the year before.

FDI inflows in 2024 were largely driven by the services sector, which attracted RM39.4bn, followed by manufacturing (RM9.1bn) and mining & quarrying (RM5.3bn). Within services, key investment areas included information & communication, and financial & insurance/takaful activities.

Meanwhile, manufacturing inflows were concentrated in electrical & electronic products, along with non-metallic mineral products, basic metal, and fabricated metal products. Singapore, Hong Kong, and the US were identified as the top three investor markets in terms of FDI flows.

By sector, services held the largest share of FDI position at RM524.8bn, driven by long-term investments in financial & insurance/takaful activities, information & communication, as well as wholesale & retail trade.

The same three markets, Singapore, Hong Kong, and the US, also topped the list in terms of overall FDI positions in Malaysia.

FDI-linked projects continue to create thousands of skilled jobs

Malaysia’s manufacturing-focused FDI continues to translate into strong job creation, particularly in high-value sectors such as manufacturing and green technology. In Q1 2025 alone, investments in the manufacturing sector totalled RM20.9bn, helping to generate over 33,300 new jobs, according to data from the Malaysian Investment Development Authority (MIDA).

This momentum is further supported by a RM89.8bn investment pipeline, with major global tech players such as Amazon and Google expanding their presence through data centres and cloud infrastructure.

Looking ahead, the country’s shift towards sustainability is expected to deliver long-term employment gains. Under the 12^th Malaysia Plan, projected green investments of up to RM1.3tn by 2050 are anticipated to create 310,000 green jobs, driven by demand for renewable energy, green mobility, and low-carbon initiatives.

Local policies such as the Green Technology Financing Scheme (GTFS) 4.0, alongside tax incentives under the Green Investment Strategy (GIS), are playing a key role in nurturing green employment while supporting Malaysia’s broader energy transition goals.

Lead image / DOSM