Malaysia has been sustaining its drive as one of the region’s investment destinations. This as the country secured 89.8 billion Malaysian ringgit (about US$21.29 billion) in approved investments in the first quarter of 2025, growing 3.7 percent year-on-year.

Moreover, the country continues its investment streak as it recently announced the opening of a cutting-edge lithium-ion battery separator facility, which is a major leap to its ambition to become Southeast Asia’s leading electric vehicle (EV) hub.

ICT, Manufacturing Drive Growth

According to Malaysian Investment Development Authority (MIDA), Malaysia’s investments for the quarter spread across 1,556 projects. Foreign investments dominated the landscape with about 60.4 billion Malaysian ringgit or 67.3 percent of the total investments. Domestic investments accounted for 29.4 billion Malaysian ringgit or 32.7 percent.

The main sector, which is services, topped total investments for the first quarter. Specifically, the sector received 57.8 billion Malaysian ringgit in approved investments across 1,342 projects with 64.4 percent share. Sub sectors include information and communications (35.1 billion Malaysian ringgit) and real estate (13.6 billion Malaysian ringgit). Other sub sectors are support services, financial services, and distributive trade.

On the other hand, Malaysia’s manufacturing sector secured 30.5 billion in approved investments for the quarter with 207 approved projects or 33.9 percent share. Among the top sub sectors are electrical and electronics (E&E) with 8.6 billion Malaysian ringgit of investments and chemical and chemical products with 4.2 billion Malaysian ringgit. Other sub sectors are fabricated metal products and machinery and equipment.

Meanwhile, the primary sector secured 1.5 billion Malaysian ringgit of approved investments, with mining as subsector.

Last year, Malaysia recorded a RM378.5 billion in approved investments, achieving historic high with 14.9% year-on-year growth. The approved investments spans 6,700 projects across key sectors that will create 207,000 new jobs.

Notable Projects

During the period, several multinational corporations have tossed their confidence to Malaysia’s investment viability. Among them are TF AMD Microelectronics (Penang) Sdn. Bhd., which has committed 1.5 billion Malaysian ringgit of investment for integrated circuit and wafer bumping activity. Another is Londian Wason Copper Foil (Malaysia) Sdn. Bhd., investing 1.4 billion Malaysian ringgit.

One of the most recent announcements is the lithium-ion battery separator facility of INV New Material Technology Sdn with about 3.2 billion Malaysian ringgit investment. The newly launched facility will produce 1.3 billion square metres of wet-processed and coated lithium-ion separators – an essential component in EV battery manufacturing. The project has generated over 2,000 job opportunities.

INV’s plant also sets a benchmark in Industry 4.0 adoption.  The facility integrates advanced automation, smart manufacturing systems, and digital technologies to maximise operational efficiency, enhance precision, and promote sustainable practices.

Japans’ HORIBA Group also announced earlier a significant expansion in Malaysia with plans to establish its first manufacturing facility in the state of Kedah. This strategic investment will create the company’s first production base for mass flow controllers (MFCs) in Malaysia, with full-scale operations scheduled to commence in January 2026.

Early this year, the Malaysian government has struck a deal with Arm, he chip design company of the Japan-headquartered Softbank. The deal with Arm involves Malaysia investing US$250 million to Arm over a period of 10 years for the access of chip IP designs. The deal will help the country move forward as a backend to frontend chip manufacturer.

Malaysia has been actively boosting its investments portfolio and has recently announced netting about US$1.1 billion in investment potentials from Japan in the ongoing Expo 2025 Osaka.

04 July 2025