Finance Minister Lim Guan Eng said the approved FDI’s were for investment across various manufacturing industries and companies from different regions.(NSTP/DANIAL SAAD)

PUTRAJAYA: Approved Foreign Direct Investments (FDI) in the manufacturing sector rose by RM35 Billion in the first nine months of this year.

The latest FDI figures from the Malaysian Investment Development Authority (MIDA) in the sector showed that it increased by 250 per cent to RM49 billion in the first nine months of 2018, up from RM14 billion recorded in the same period last year.

Finance Minister Lim Guan Eng said the approved FDI’s were for investment across various manufacturing industries and companies from different regions.

“Approved FDI from China led the way at 32 per cent of the total, followed by Indonesia at 18.4 per cent and the Netherlands at 17.0 per cent. The FDI from USA stands at 6.4 per cent, Korea (five per cent), Japan (4.3 per cent) andSingapore(2.5 per cent) were also approved from January to September this year.

“For the months from May to September, total approved FDI in the manufacturing sector was RM35 billion compared to RM7.3 billion from May to September2017.

“This demonstrates that foreign investors’ confidence in Malaysia is resurgent, with a RM27.7 billion or 379 per cent hike in the said figures, after the peaceful transition of power that took place on May 9 May,” said the minister in a statement today.

These figures, he added, did not include some of the more recent FDI approvals, including the RM1.5 billion, which would be invested by NASDAQ-listed Micron over the next five years, in its Solid-State Drive (SSD) Assembly and Testing Centre of Excellence in Penang.

“The figures mentioned by former Prime Minister Datuk Seri Najib Razak referred to the actual foreign direct investment in realised value that flows in as found in the Balance of Payments documents. It is a lagged indicator, which means that the low and falling figures reflect the past efforts to attract FDI carried out before the change of power took place.

“Unlike figures cited by Datuk Seri Najib, the RM49 billion approved manufacturing FDI statistics from MIDA are forward-looking in nature in terms of potential investment and confined to the manufacturing sector only.

“The realisation of the approved manufacturing FDI projects will be reflected in the actual FDI statistics as recorded in the Balance of Payments in the future,” said Lim.

Furthermore, he said, the full amount of approved manufacturing investments would be realised progressively over time and not in one lump sum at one go.

“Such realised value will be in accordance to the schedule of the construction of the facilities such as factories which may take up to two years.

“The government is working to ensure the approved manufacturing FDI will be realised as soon as possible in order to hasten economic growth for the well-being of the rakyat.

“The resurgence in approved FDI numbers are a positive indicator of encouraging economic growth in the future.

The government will press on its efforts to attract high quality FDI to provide well-paying jobs and career growth opportunities for Malaysians and business opportunities for the Small and Medium Enterprises (SMEs) as part of the larger vendor development ecosystem.”

At the same time, he said, the government would continue to work with existing companies to ensure that their approved projects were smoothly implemented and executed.

Lim added the approved manufacturing FDI figures quoted here did not include approved FDI in services sector, whereas the FDI figures announced in Budget 2019 included approved FDI inboth the manufacturing as well as services sectors.