PETALING JAYA: Malaysia achieved overseas direct funding (FDI) internet inflow of RM40.4 billion in 2023 whereas direct funding overseas (DIA) totalled RM40.6 billion in keeping with the Department of Statistics Malaysia.
Chief Statistician of Malaysia Datuk Seri Dr Mohd Uzir Mahidin stated the FDI internet inflow in 2023 decreased from RM75.4 billion in the earlier 12 months primarily as a consequence of fairness and funding fund shares, reflecting the worldwide financial slowdown.
“This was in line with Unctad’s 2024 Global Investment Trends Monitor report which highlighted that the FDI flows to growing international locations declined roughly 9%, totalling US$841 billion in 2023. Notably, growing Asia dropped round 12% to US$ 584 billion, with Asean’s FDI reducing about 16%,” he added.
However, the cumulative worth of overseas funding, referred to as the FDI place rose to RM926 billion at the tip of 2023, making up 50.8% (2022: 49.0%) of gross home product (GDP), primarily attributed to non-transaction classes.
Meanwhile, DIA internet outlow fell from RM62.8 billion in the previous 12 months, whereas the inventory elevated to RM664.4 billion, representing 36.4% (2022: 33.8%) of GDP.
Looking at the sectoral distribution, the companies sector emerged as the first recipient of FDI, with a internet inflow of RM35.4 billion, surpassing the manufacturing sector. Within companies, info and communication contributed the very best share, which is in line with rising digital international enterprise and knowledge centre associated actions, adopted by the monetary and insurance coverage/takaful sub-sector.
The manufacturing sector remained the very best contributor to complete earnings regardless of decrease internet inflow, producing RM41.9 billion, largely pushed by {the electrical}, transport gear, and different manufacturing sub-sectors. Cumulatively, each companies and manufacturing sectors vital worth in place, with RM468.2 billion and RM391.3 billion, respectively.
Geographically, Asia remained the dominant supply of FDI, contributing RM54.3 billion in 2023 with a place valued at RM508.4 billion. Leading traders from the area included Singapore, Hong Kong and Japan. The Americas, significantly the United States, earned the very best earnings from FDI, totalling RM41.4 billion.
On Malaysia’s investments overseas, Mohd Uzir stated, “The DIA internet outflows had been principally contributed by the companies sector with a price of RM34.5 billion, primarily in monetary and insurance coverage/takaful actions and utilities. This sector additionally generated the very best earnings at RM23.9 billion, adopted by mining and quarrying RM10.7 billion.
Seemingly, the companies sector remained the first contributor of DIA in 2023 by registering the collected place at RM461.1 billion, trailed by mining and quarrying at RM80.5 billion and manufacturing at RM60 billion.
In phrases of area, Asia remained the main vacation spot of DIA flows in 2023 with RM29.9 billion, significantly to Singapore and Indonesia.
The highest earnings was additionally generated from Asia, amounting to RM24 billion, particularly from Singapore, Indonesia and Vietnam. Hence, the DIA place of Asia stood at RM365.1 billion at the tip of 2023, the very best contributor amongst different areas. The Americas was the second largest contributor for DIA outflows and earnings, each amounting to RM7.5 billion, with a complete place of RM156.2 billion.
On common, the return on funding for FDI firms in 2023 decreased to 10 sen from 12 sen in the earlier 12 months for each RM1 of funding. Concurrently, Malaysian firms acquired 6 sen for each RM1 of funding made overseas.
