A total of 78% approved investments in the Malaysian manufacturing sector came from foreign sources last year. In 2021, the share was higher at 92%.
Companies were diversifying out of China – dubbed as the world’s factory –with the “China Plus One” strategy. In 2022, DDIs contributed about 38.9% or RM104.4bil of total approved investments into Malaysia. In the first quarter of 2023, the share of DDIs increased to 47.5% of total committed investments worth RM71.4bil.He added that the government should address issues that are holding back local companies.
Williams said many GLICs, apart from the Employees Provident Fund, are “too small” to change their strategies meaningfully and some are underperforming. Meanwhile, Socio Economic Research Centre executive director Lee Heng Guie said domestic industries are the backbone of the country’s investment and industrial development.