Foreign Direct Investment in Malaysia

Overview

Foreign Direct Investment (FDI) in Malaysia registered a higher net inflow of RM74.6 billion in 2022 as compared to RM50.4 billion in the previous year. In terms of position, FDI climbed to RM879.1 billion as at the end of 2022 (2021: RM782.0 billion). Meanwhile, investment income rose to RM104.7 billion from RM100.4 billion in 2021.

Manufacturing sector was the main contributor to FDI flows in 2022, followed by Services and Mining & quarrying sector. The investment in Manufacturing sector was driven by Electrical, transport equipment and other manufacturing sub-sector while the Services sector was largely in Financial & insurance / takaful activities. Main country for FDI flows were the United States of America (USA), Singapore and Japan.

The FDI position stood at RM879.1 billion as at the end of 2022, whereby the Services sector was the largest contributor precisely in Financial & insurance / takaful and Wholesale & retail trade activities. This was followed by the Manufacturing sector with Electrical, transport equipment and other manufacturing as the main sub-sector. Singapore, the USA and Hong Kong were the largest investor country for FDI position.

Investment income increased to RM104.7 billion from RM100.4 billion in previous year, due to higher income earned by foreign companies in Malaysia. Manufacturing and Services were the main sectors, while investors from the USA, Singapore and Japan gained the highest earnings in 2022.

The full publication of the Statistics Foreign Direct Investment (FDI) in Malaysia 2022 can be downloaded through eStatistik Portal.

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