Investments up by 24.8% in 2012
Feb 28, 2013 - By: iProperty.com Singapore
For the year ended 2012, Malaysia attracted record investments totalling RM139.5 billion (S$55.7billion) which is a 24.8% increase from the year before.
At the annual performance review of the Malaysian Investment Development Authority on 27th February 2013, Minister for International Trade and Industry Mr. Mustapa Mohamed said that domestic investments would continue to drive the economy forward and at the same time, cushion some impact from sluggish external demand.
Back in 2012, the sum of investments, both domestic and foreign, exceeded the government's target by almost 10% and created some 79,807 jobs, of which 62% were skilled workers and executives drawing monthly salaries of RM3,000 and above.
Although foreign direct investment (FDI) figures fell to RM29 billion in 2012 from RM36 billion a year before, FDI is expected to pick up this year. As the manufacturing sector, especially in the electrical and electronics segment, is facing a sharp drop in attracting labour-intensive operations, Malaysia would be banking on its research and development (R&D) sector instead. Apart from the R&D sector, a large portion of the investments would be pooled in real estate, aerospace, solar energy and medical services.
Last year, Singapore was among a pool of large foreign investors that invested in Malaysia, including Japan and Saudi Arabia. Analysts said that there is still room to drive foreign investment in the country. According to Dr Yeah Kim Leng, Chief Economist of RAM Holdings, he said that Malaysia is performing reasonably well on the whole, so long as the level of FDI is around RM30 billion. Furthermore, he added that the quality of FDI being brought into Malaysia is important. This is in line with the recent announcement of CapitaLand venturing into a S$3.2 billion project in Danga Bay with Temasek Holdings and Iskandar Waterfront.
With huge pools of funds going into Malaysia coupled with the development of the Malaysia-Singapore high speed railway link, more and more locals are encouraged to head there to source for property deals.
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