Foreign Direct Investment in Malaysia

Overview

Foreign Direct Investment (FDI) in Malaysia expanded to RM65.9 billion in 2025, representing an increase of 41.2 per cent from RM46.7 billion in the previous year. The total income earned by foreign enterprises operating in Malaysia amounted to RM98.2 billion, slightly lower than RM100.6 billion in 2024. Meanwhile, the cumulative FDI position reached to RM1,087.9 billion at the end of 2025 from RM993.9 billion in the preceding year.

The Services sector was the major contributor to FDI flows in 2025, attracting net inflows of RM59.5 billion as compared to RM35.6 billion in the preceding year. This was followed by Mining & quarrying sector at RM3.0 billion and Manufacturing at RM2.6 billion. Within the Services sector, investments were primarily concentrated in Information & communication sub-sector and Financial & insurance/takaful activities. Meanwhile, Manufacturing sector was mainly driven by Electrical & electronic products and Non-metallic mineral products, basic metal & fabricated metal products sub-sectors. The main sources of FDI flows were Singapore, Hong Kong and China. 

The Manufacturing sector was the top recipient of FDI income in 2025, generating RM55.5 billion as against RM54.2 billion in the previous year. The Services sector was the second-largest contributor with FDI income amounting to RM35.4 billion, supported by Financial & insurance/takaful activities and Wholesale & retail trade. While investors from the United States of America, Singapore and Hong Kong gained the highest earnings in 2025. 

In terms of cumulative FDI, Services sector accounted for the highest share with a total value of RM596.7 billion as at the end of 2025. This was largely attributable to investments in Financial & insurance/takaful activities, Information & communication and Wholesale & retail trade. The Manufacturing was the next largest sector amounting to RM419.3 billion, particularly in Electrical and electronic products. While, Singapore, Hong Kong and Japan were the largest investor countries for FDI position. 

The full publication of the Statistics Foreign Direct Investment (FDI) in Malaysia 2025 can be downloaded through eStatistik Portal.


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