Malaysia’s approved investments dipped marginally by 0.2% to RM92.8 billion in the first quarter of 2026 from RM93 billion a year earlier but the projects are expected to create sharply more jobs, helped by stronger domestic investment and data centre-related approvals.
The Malaysian Investment Development Authority (Mida) said in a statement on Monday the approved investments involved 1,249 projects across the services, manufacturing and primary sectors and are expected to generate 50,226 jobs, up 46.7% from 34,240 jobs in 1Q2025.
Foreign investments accounted for RM56.2 billion or 60.5% of total approved investments while domestic investments rose 13% year-on-year to RM36.6 billion, making up the remaining 39.5%.
Japan emerged as the largest foreign investor with RM21.5 billion in approved investments, surging from RM1.6 billion a year earlier, followed by China and the US with RM10.1 billion each, Singapore with RM6.7 billion and Thailand with RM2.5 billion.
Mida said 93.6% of Japanese approved investments in the quarter were channelled into digital transformation activities, reflecting Malaysia’s growing role in regional high-technology and digital supply chains.
Selangor led the states with RM33.5 billion in approved investments, followed by Johor and Kuala Lumpur with RM16.9 billion each, Penang with RM6.2 billion and Sarawak with RM4 billion. Selangor’s approved investments almost tripled from RM11.8 billion in 1Q2025.
The services sector remained the largest contributor, securing RM60.8 billion or 65.5% of total approved investments. This was driven mainly by the information and communications subsector, which accounted for RM38.9 billion, supported by data centre and cloud computing investments worth RM34.6 billion across 33 projects.
Manufacturing-approved investments stood at RM24.1 billion, down 20.8% year-on-year, although Mida said the decline was mainly due to a RM6.6 billion basic metal project approved in 1Q2025. Excluding that project, manufacturing investments grew 1% year-on-year.
The sector remained the main driver of employment, with approved manufacturing projects expected to create 30,468 jobs, or 60.7% of total expected jobs. Mida said 17.9% of the new manufacturing jobs offer monthly salaries above RM5,000.
The primary sector recorded RM7.9 billion in approved investments, up sharply from RM1.5 billion a year earlier, driven entirely by oil and gas projects involving offshore development and exploration activities, mainly in Sarawak.
As at May 5, Mida said it was facilitating 182 potential projects worth RM38.3 billion, comprising 105 services projects worth RM14.1 billion and 77 manufacturing projects worth RM24.2 billion. It is in active discussions for another RM91 billion worth of potential investments.
Mida CEO Datuk Sikh Shamsul Ibrahim Sikh Abdul Majid said 85% of manufacturing projects approved since 2021 had reached various stages of implementation as at February 2026 while only 3.2% had been abandoned.
Source: theedgemalaysia