RM81.9b worth of foreign investment projects identified in manufacturing and services sectors, says Mida amid criticism of falling FDI

KUALA LUMPUR, Jan 29 ― In response to reports of falling foreign direct investments (FDI), the Malaysian Investment Development Authority (Mida) today announced that it has identified 240 high-profile foreign investment projects in the manufacturing and services sectors, with a combined potential investment value of RM81.9 billion.

Mida said the projects are still being negotiated, adding that it has also “received and evaluated” RM47.7 billion worth of other potential investments.

“These projects, once approved, are expected to be implemented within the year 2021 to 2022,” it said in a statement today.

“The government acknowledges that the FDI landscape has been and will likely remain

challenging and highly competitive. As such, accelerating investments is a key priority in

securing Malaysia’s growth recovery.”

Mida stressed that measures to facilitate investors and improve their experience will be continued.

It added that specific initiatives have been implemented to expedite investments, including the establishment of the Project Acceleration and Coordination Unit (PACU) and online platforms such as i-Incentive.

“The government is also currently formulating a national investment strategy to attract high-quality investments that can meaningfully enhance Malaysia’s productive capacity, create high-skilled jobs, promote technology transfer and foster domestic linkages,” it said.

Mida also pointed towards the National Economic Recovery Plan (Penjana) where the government introduced several tax incentives to spur investment activity, including a 10- to 15-year tax exemption for new FDI in the manufacturing sector with a capital investment of RM300 million or more.

Earlier this week, the United Nations Commission on Trade and Development (UNCTAD) reported that the inflow of FDI into Malaysia dropped by 68 per cent to US$2.5 billion (RM10.1 billion) last year.

In comparison, FDI in South-east Asia decreased by 31per cent, to US$107 billion (RM433.6 billion).

Before the report, the Perikatan Nasional government was already under fire for alleged mishandling and misinformation surrounding foreign investments.

Most prominently, earlier this month, Finance Minister Datuk Seri Tengku Zafrul Abdul Aziz was criticised by chief executive officer of the European Chamber of Commerce, Sven Schneider, for not meeting with European investors and addressing their concerns.

Zafrul had earlier taken to social media site LinkedIn to boast that Malaysia was receiving continued confidence from foreign investors.

Since the UNCTAD report, Opposition Leader Datuk Seri Anwar Ibrahim and Umno leaders — Youth chief Datuk Asyraf Wajdi Dusuki along with Johor branch deputy chief Datuk Nur Jazlan Mohamed — have also questioned the government regarding the drop in FDI.