Malaysia attracted a stronger net inflow of Foreign Direct Investment (FDI) in 2024, reaching RM51.5 billion, up from RM38.6 billion recorded in 2023, reflecting continued investor confidence in the country’s economic environment and long-term growth prospects.
The total FDI position in Malaysia stood at RM995.5 billion at the end of 2024, compared to RM924.0 billion in the previous year.
This indicates that more foreign capital was being invested and retained in the country, particularly in key economic sectors.
Foreign companies operating in Malaysia also recorded higher earnings in 2024, generating a total income of RM99.8 billion, up from RM88.4 billion in 2023. This growth highlights Malaysia’s continued appeal as a profitable destination for international businesses.
The Services sector remained the largest contributor to FDI inflows, attracting RM39.4 billion in 2024. Within this sector, the majority of investments were channelled into Information & Communication as well as Financial & Insurance/Takaful activities.
The Manufacturing sector followed with an inflow of RM9.1 billion, largely focused on Electrical & Electronic products, Non-metallic mineral products, and Fabricated metal products. The Mining & Quarrying sector received RM5.3 billion in FDI.
Top Sources of FDI
The main sources of FDI inflows in 2024 were Singapore, Hong Kong, and the United States of America (USA), continuing their strong investment presence in Malaysia. These countries played a key role in supporting Malaysia’s industrial and services development through capital inflows and business expansion.
FDI Position by Sector
In terms of total FDI position, the Services sector accounted for the largest share at RM524.8 billion as at the end of 2024.
This was mainly supported by sustained investments in Financial & Insurance/Takaful, Information & Communication, and Wholesale & Retail Trade activities. The Manufacturing sector ranked second with a total of RM400.8 billion, especially in the Electrical & Electronic products sub-sector.
The Manufacturing sector continued to generate the highest income from FDI, recording RM54.6 billion in 2024, a significant increase from RM41.8 billion in 2023. The Services sector was the second-highest contributor, with income amounting to RM36.0 billion, mainly driven by activities in finance and insurance.
Meanwhile, investors from the USA, Singapore, and Japan recorded the highest earnings from their investments in Malaysia in 2024, underscoring the profitability and performance of their operations within the country.
Shahriena Shukri is a journalist covering business and economic news in Malaysia, providing insights on market trends, corporate developments, and financial policies. More about Shahriena Shukri.
