MIDA sees 91,500 jobs created from RM113.5b approved investments in Jan-Sept – Business News


KUALA LUMPUR: Malaysia’s approved investments in the  manufacturing, services and primary sectors fell to RM113.50bil  in January to September of 2017 due to a higher base effect last year and subdued property market.

The Malaysian Investment Development Authority (MIDA) said on Friday these investments involved 3,886 projects and woud have a capacity to create 91,500 jobs.

Local sources accounted for three-quarters of the approved investments at 73.5%and the rest were foreign sources.

MIDA explained the January-September 2017 approved investments fell by 26.5% from the RM154.3bil approved a year ago.

MIDA said this decline was mainly due to the lower quantum of approved investments recorded in the services sector – which fell by 37.6%. 

“This was in line with the subdued property market that is expected to persist until the end of the year. 

“Manufacturing sector too declined 15.5% partly due to the higher base reported previously as a result of approvals associated with lumpy projects (Pengerang and RAPID project in Johor),” it said.

MIDA added this was also due to the softening global foreign direct investments (FDI) trend for this sector as highlighted by UNCTAD’s World Investment Report 2017. 

Despite this moderation, Malaysia’s strategy of positioning local companies as the primary driver of the country’s growth is paying off. 

Elaborating on the January-September 2017 approved investments, MIDA said  Malaysian companies took the lead in all main sectors – manufacturing, services and primary. 

Importantly was that the higher component of approved domestic investments was in line with the government’s drive to ensure sustainable economic growth in the future. 

Under the Economic Transformation Programme (ETP) domestic investments are targeted to account for 73% of total investments by the year 2020.

Commenting on the services sector, MIDA said there were RM69.2bil worth of investments from 3,386 projects. These projects would create 57,884 jobs.

Out of the total, 81.2% or RM56.2bil were from domestic sources and the remaining 18.8% or RM13bil  from foreign sources.

Most of the investments in the services sector were from real estate at RM28.4bil, followed by ICT (RM7.9bil), distributive trade (RM7.2bil), financial services (RM6.6bil) and utilities (RM6.5bil). 

Commenting on the  Principal Hub (PH) scheme, it said since the completion in July 2017, MIDA has approved six PH projects with RM1.5bil investments in the third quarter of 2017. 

“The agency is currently in the process of evaluating several PH projects and MIDA foresees that more sizeable investments could be approved soon,” it said.

Elaborating on the investments, MIDA said 464 manufacturing projects worth RM35bil were approved in January-September of 2017, where about one-third was in the oil and gas sector.

Importantly, these projects can create more than 32,700 jobs. Most of the investments were in petroleum products including petrochemicals (RM12.4bil), electronics and electrical (E&E) (RM8.8bil), chemicals & chemical products (RM2.7bil), non-metallic minerals (RM2.5bil) as well as scientific & measuring equipment (RM2bil). These make up 81.1% of total approved investments for this sector.

Domestic investments accounted for nearly 60% of the total investment approved for the sector while the balance was contributed by foreign sources. 

Among domestic companies that continue to embark on new or expansion and diversification projects during the period are Petronas Floating LNG, Salutica Allied Solutions, Inari Technology, Sime Darby Biodiesel, Omni Oil Technologies, Saiyakaya and Kibaru Innovation.

Switzerland, the Netherlands, Singapore, Hong Kong and Germany accounted for 63.4% of total foreign investments approved in the manufacturing sector for this period. 

Notably, 70.4% of foreign investments in the manufacturing sector were expansion or diversification projects by renowned existing investors such as TF-AMD Micro-Electronics, Longi, Osram, and ASE Electronics Malaysia.

Meanwhile, Sarawak registered the highest recipient of approved investments amounting to RM10.5bil with Penang in second spot at RM9.9bil), Johor (RM3.7bil), Melaka (RM3.2 bil) and Selangor (RM3bil). 

Collectively, these states attracted 86.6% or RM30.3bil of the total approved investments with the capacity to create more than 26,000 jobs to these states.

As for the primary sector, in January–September 2017, it saw a surge in investments, suring 390.5% to RM9.3bil. Domestic investments accounted for nearly two-thirds at RM6.4bil and foreign investments RM2.9bil. 

The mining sub-sector took the lead with approved investments of RM8.6bil in 21 projects, followed by the plantation and commodities sub-sector with investments of RM612.5mil while the agriculture sub-sector made up the rest.

Read more : thestar

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