Malaysia Approves RM285.2 Billion Investments in 9M 2025

Malaysia recorded RM285.2 billion in approved investments for 9M 2025, a 13.2% year-on-year increase, signalling robust investor confidence.

Sector breakdown:

• Services — RM187.9 billion (65.9%) — 19.8% YoY growth
• Manufacturing — RM93.8 billion (32.9%) — 5.6% YoY growth
• Primary Sector — RM3.5 billion (1.2%)

These projects are expected to generate 152,766 new jobs.

FI accounted for 52.9% (RM150.8 billion) of total investments,
representing a significant 47.5% YoY increase.

Top FI sources:
1️⃣ Singapore – RM52.7 billion
2️⃣ China – RM35.8 billion
3️⃣ United States – RM11.3 billion
4️⃣ British Virgin Islands – RM6.6 billion
5️⃣ Japan – RM4.8 billion

FI is heavily concentrated in advanced manufacturing, semiconductors, digital infrastructure, renewable energy and high-value services.

Top 5 states by approved investment:

1. Johor – RM91.1 billion
2. Selangor – RM51.9 billion
3. Kuala Lumpur – RM45.9 billion
4. Penang – RM23.7 billion
5. Kedah – RM17.5 billion

Johor’s dominance is driven by:

• Johor–Singapore Special Economic Zone (JS-SEZ)
• Proximity to Singapore’s economy and supply chain
• Increasing demand for land, logistics capacity and industrial parks
• Rapid expansion in E&E, data centres, EVs and advanced manufacturing

This marks a major opportunity window for Johor-based businesses.

FI dominates manufacturing investments (77.9%, RM73.1 billion).

Top industries:

• Electrical & Electronics (E&E) – RM22.0 billion
• Chemicals – RM17.5 billion
• Transport Equipment – RM12.7 billion
• Basic Metals – RM9.9 billion
• Non-Metallic Minerals – RM7.5 billion

Key approved projects include:

• RM3.51B advanced semiconductor packaging facility (Kedah)
• RM5.76B advanced mineral processing plant (Terengganu)
• PROTON NEV & EV expansion (Perak)
• Multiple semiconductor material & precision engineering expansions

With RM187.9 billion in approvals, services continues to grow as a:

• Regional data centre hub
• Corporate HQ hub
• Digital infrastructure base
• Expanding financial & logistics ecosystem

Main sub-sectors include ICT, real estate, utilities, distributive trade, and support services.

1. Johor Will See a Surge in MNCs, Supply Chains and Industrial Activity

Especially in sectors such as:

• Semiconductors
• EV & automotive
• Logistics & warehousing
• Construction & industrial services
• Professional services

Local SMEs should prepare to integrate into these supply chains.

2. Talent Demand Will Increase Sharply

With 152,766 new jobs expected, businesses should prepare for:

• Stronger talent competition
• Upward salary trends
• Higher demand for HR compliance, EPF, SOCSO & payroll accuracy

3. Technology & Digitalisation Will No Longer Be Optional

Manufacturing’s MTS (managerial/technical/professional) index has reached 45%,
indicating Malaysia’s shift toward higher-value production.

SMEs must:
✔ adopt automation
✔ enhance efficiency
✔ strengthen tax & accounting compliance
✔ consider ESG frameworks (increasingly required by MNCs)

4. High Implementation Rate = Real Opportunities

85% of approved manufacturing projects since 2021 have already been implemented.
This means the investments are not only “on paper”—they are real and active, creating real demand for suppliers and service providers.