Foreign Investors' Confidence Also Drives Domestic Investment Growth - Sim
KUALA LUMPUR, July 30 (Bernama) -- Malaysia has remained a preferred destination for foreign companies due to its strategic position and neutrality in the global geopolitical landscape as well as access to a wide range of markets, contributing to RM1.14 trillion in approved investments over the three years under the MADANI Government.
Deputy Investment, Trade and Industry Minister Sim Tze Tzin said the inflow of investments has also boosted the confidence of local companies to invest, driving growth of domestic investment which now accounts for about 45 per cent of total investment.
“With regard to domestic investment (DI) and foreign investment (FI), we have not set key performance indicators (KPIs) as it depends on the prevailing circumstances.
“We know that many foreign companies are currently very interested in Malaysia. They are coming following the Prime Minister’s efforts to attract investments from around the world,” he said during a question-and-answer session in the Dewan Negara today.
He was responding to a supplementary question from Senator Datuk Wu Him Ven regarding the Ministry of Investment, Trade and Industry’s (MITI) target to increase domestic investment relative to foreign investment over the next five years, as well as any KPI that has been established.
Sim said the government is also encouraging DI through the New Incentive Framework launched in March 2026, which offers various incentives to local companies to increase their investments.
In addition, he said, the government is working to match local companies with international and multinational corporations, enabling them to become vendors and part of supply chains so that local businesses also benefit from the inflow of foreign investments.
“Overall, the (reinvestment by local companies) is due to the symbiotic relationship (between FI and DI).
“When foreign investors come, local companies also benefit. Seeing foreign investors’ confidence in Malaysia encourages domestic companies to invest as well. This is something that is very positive for Malaysia at present,” he said.
Meanwhile, in response to Senator Rita Sarimah Patrick Insol’s original question on the growth of domestic investment over the past five years compared with foreign investment, Sim said the MADANI Government prioritises a balanced approach to attracting foreign investment while strengthening domestic investment, as both complement one another in stimulating national economic growth.
According to Sim, over the five-year period from 2021 to March 2026, total approved investments across various economic sectors reached RM1.8 trillion, with RM818.5 billion coming from DI and RM996.4 billion from FI.
He said this positive development reflects the effectiveness of government policies in supporting local companies to continue expanding.
“From 2021 to March 2026, a total of 4,242 Malaysian-owned projects worth RM116.1 billion were approved with various incentives under the Malaysian Investment Development Authority (MIDA), creating more than 37,000 new jobs,” he said.
Sim added that examples of reinvestment commitments by local companies include QL Foods Sdn Bhd’s RM1.3 billion investment, creating 3,000 new jobs; Institut Jantung Negara Sdn Bhd’s RM260 million investment, creating 920 new jobs; ViTrox Technologies Sdn Bhd’s RM250 million investment, creating 1,889 new jobs; and Kelantan-based Ain Medicare Sdn Bhd’s RM170.9 million investment, creating 82 new jobs.
“The government does not rely solely on FI. Government policies that strengthen strategic cooperation between foreign and domestic investors have successfully leveraged foreign investment as a catalyst to enhance the capabilities of domestic investors to reinvest and drive the country's economic growth,” he added.
-- BERNAMA