UOB: Investment approvals rise 51.5 pct yoy to RM177.8 bln in Jan-Sept 2021

KUALA LUMPUR, Jan 3  -- Malaysia’s total investment approvals rose 51.5 per cent year-on-year to RM177.8 billion in the period of January-September 2021 versus RM117.4 billion in January-September 2020, UOB Malaysia senior economist Julia Goh said. 

She said the manufacturing sector accounted for the largest share of total investments amounted to RM103.9 billion followed by the services sector at RM57.8 billion and the primary sector at RM16.1 billion. 

“Foreign direct investment (FDI) approvals accounted for nearly 60 per cent of overall approved investments, or at RM106.1 billion, with major investments from Singapore, China, Austria, Japan, and the Netherlands.

“FDI led the approved investments in manufacturing while domestic investments drove the services and primary sectors.

“Domestic direct investment (DDI) approvals accounted for RM71.7 billion or 40.3 per cent of total. The states that attracted the most approved investments in all three sectors were Kedah, Sarawak, the Kuala Lumpur Federal Territory, Selangor and Pahang,” she said in a note today.

In addition, Julia said with year-to-date total investment approvals reaching 96 per cent of its initial full-year target of RM185 billion and incorporating the recent announcement of over RM30 billion worth of investment by a US chip giant, UOB raises its 2021 full-year target to RM215 billion compared to RM167.4 billion in 2020.

She said however, expectations of tighter global monetary conditions and lingering uncertainties surrounding the pandemic would continue to pose challenges to FDI flows in emerging markets, including Malaysia next year -- UOB projects RM200 billion worth of investment approvals for 2022.

-- BERNAMA