MALAYSIA: KEY ECONOMIC DATA
Population: 30.95 million
GDP: EUR 269.8 billion
GDP (per capita): EUR 8.509
GDP (PPP): EUR 770.1 billion
GDP (PPP, per capita):EUR 24.252
Real GDP Growth:4.3%
Consumer Price Index (CPI): 2.0%
Labor Force: 14.77 million
Unemployment Rate: 3.3%
PPP – purchasing power parit
MALAYSIA: KEY MESSAGES
Despite challenges & global uncertainties, Malaysia continues to strengthen its growth momentum & remain as a competitive investment destination.
Some policy alignments are undertaken to address the misperceptions among investors.
Investments projects realised will have substantial effect on the economy:
- Forward-and-backward linkages
- Development of supporting industries
- Transfer of technologies and R&D
- Creation of employment opportunities
- Local sourcing
- Skills development
- Generation of foreign exchange earnings
MALAYSIA: INVESTMENT OUTLOOK
- According to UNCTAD, fundamentals support a rise in global FDI flows in 2017 but uncertainties abound
- Global economic growth is projected to accelerate to 3.4% in 2017 compared to 3.1% 2016
- Greater economic activity boost world trade volumes and forecast to expand by 3.8% in 2017 compared to 2.3% in 2015
- UNCTAD projects global FDI flows to increase by 10% over the year
- The World Bank expects Malaysia’s economy to remain resilient to external headwinds, with GDP growth projected around 4.2% in 2016 and 4.32% in 2017.
Source: IMF/ UNCTAD / The World Bank
MALAYSIA: FDI STOCK
MALAYSIA: INVESTMENT BY SECTOR & SOURCE
"Services sector remains strong and continues to lead with investment of RM 141.2 bil. Domestic Investments continue to spearhead private investments."
MALAYSIA: FDI INFLOWS BY SECTOR
"In 2016, FDI inflows in the Services sector increased to RM20.9 bil. compared with RM 12.6bil. recorded in 2015."
Source: MIDA & DOSM
MALAYSIA: SOURCES OF FDI
"China, the Netherlands, Germany, the UK and Republic of Korea were the main sources of FDI, contributing more than half of the total foreign investments approved."
MALAYSIA: WAY FORWARD
- Implementing the manufacturing sector’s investment strategies/ policy formulations on 11MP’s “3+2” catalytic & growth sectors
- Increasing efforts to develop and enhance local supply chains to support MNCs
- Intensifying promotion high quality projects with focus on R&D, productivity, green technology and other quality features to locate in Malaysia
- Adopting & adapting the Fourth Industrial Revolution/ Industry 4.0 or the Smart Manufacturing revolution
- Leveraging on FTA Networks and AEC in making Malaysia an investment gateway and to gain better market access
- Continuously intensify handholding and facilitation efforts actualise implementation of approved projects
- Continuing with Turun Padang visits, Roundtable Meetings, and other outreach programmes as a means of more direct engagement with the private sector and relevant stakeholders.