DigitalCFO Newsroom | 6 January 2022
According to experts from UOB, Malaysia’s investment approvals are expected to be worth RM200 billion (S$64.8 billion) in 2022.
According to experts from UOB, Malaysia’s investment approvals are expected to be worth RM200 billion (S$64.8 billion) in 2022, as stricter global financial guidelines and lingering fears over the Covid-19 outbreak continue to impede FDI (Foreign Direct Investment) flows.
Despite the more cautious prediction, they added that Malaysia’s “robust growth opportunities, strengthened regional recovery from progressive vaccination rates, and conceivably positive investment and trade diversion outcomes with the Regional Comprehensive Economic Partnership (RCEP) coming into force in January 2022” could pose upside risks.
As part of the National Economic Recovery Plan (Penjana) unveiled in June 2020, the country has also given many tax incentives for prospective and current enterprises that are moving to Malaysia, according to UOB.
The bank’s prediction for Malaysia’s investment approvals in 2022 comes after the country’s comprehensive objective for 2021 was raised to RM215 billion. This is due to Malaysia’s year-to-date total investment approvals exceeding 96% of the bank’s initial-year objective of RM185 billion, as well as the recent news of a US chip giant investing over RM30 billion.
Malaysia’s total investment approvals increased by 51.5 percent year on year to RM177.8 billion in the first nine months of 2021, compared to RM117.4 billion in the same period of 2020.
The manufacturing industry, which stood for RM103.9 billion (58.4% of total investments), was followed by the services industry, which stood for RM57.8 billion (32.5%), as well as the primary sector, which counted for RM16.1 billion (9.1 per cent). These expenditures will fund 3,037 projects, resulting in the creation of 79,899 employment across the country.
Source: The Business Times