Malaysia secures RM218.5 billion in approved investments in first half of 2026

KUALA LUMPUR, 28 AUGUST 2026 —

Malaysia secured RM218.5 billion in approved investments in the first half of 2026, up 11.7% from RM195.5 billion in the same period last year, according to the Malaysian Investment Development Authority (MIDA).

MIDA said the first-half approvals amounted to 50.7% of the RM431.1 billion approved for all of 2025.

Foreign investments accounted for RM126.9 billion, or 58.1% of the total, up 18.5% year-on-year, while domestic investments contributed RM91.6 billion, or 41.9%, an increase of 3.5%.

The United States was the largest source of foreign investment at RM33.1 billion, followed by Singapore at RM25.9 billion, Japan at RM22.3 billion, China at RM16.5 billion and the Cayman Islands at RM4.1 billion. Together they supplied more than 80% of approved foreign investment.

By state, Selangor led with RM70 billion across 835 projects. Johor followed with RM59.4 billion, supported by the Johor-Singapore Special Economic Zone and the upcoming Rapid Transit System Link. Kuala Lumpur recorded RM26.6 billion, including residential and serviced apartment developments linked to urban growth. Penang secured RM20.2 billion, led by advanced manufacturing and semiconductor investments, while Sarawak recorded RM10.8 billion, mainly from offshore oil and gas exploration.

The services sector attracted the largest share of approved investments at RM149.6 billion, up 21% year-on-year, involving 1,750 projects expected to create 34,475 jobs. Information and communications led services growth with approved investments rising 68.2% to RM103.3 billion, while data centre and cloud computing projects accounted for RM95.8 billion, or close to 44% of the total approved investments during the period.

The five largest industries accounted for 76.9% of manufacturing approvals. Machinery and equipment and food manufacturing were among the fastest-growing, rising 44.8% and 40.9% respectively.

Nearly one-third of approved manufacturing projects, or 302, plan to export at least 80% of their output. The number of such projects rose 57.3% year-on-year. Electrical and electronics, machinery and equipment, fabricated metal products, plastic products, transport equipment and food manufacturing together accounted for 70.9% of the 302 export-oriented projects.

MIDA chairman Tengku Datuk Seri Zafrul Abdul Aziz said the half-year performance reflected continued confidence from both international and Malaysian investors.

“Investor confidence has been reinforced by structural reforms that lifted Malaysia’s standing in the IMD World Competitiveness Ranking 2026, where Malaysia ranked 15th out of 70 economies, its best placing in more than a decade,” he said.

Guided by the New Industrial Master Plan 2030, MIDA will continue to prioritise investments that transfer technology, deepen local vendor participation and create high-value jobs.

As of Aug 10, 2026, MIDA was reviewing 227 proposals worth RM72.1 billion, comprising 128 services projects worth RM36.5 billion and 99 manufacturing projects worth RM35.6 billion. A further RM58.4 billion in high-potential leads was under discussion.

MIDA chief executive officer Datuk Sikh Shamsul Ibrahim Sikh Abdul Majid said securing commitments was only half the task.

“Through the Invest Malaysia Facilitation Centre and close coordination across ministries and agencies, we help investors clear regulatory and implementation hurdles quickly,” he said. “This is reflected in the 86.3% of manufacturing projects approved since 2021 that have already moved into implementation.”

He added that MIDA stays involved to handhold projects and, through #InvestLokal, deepen the participation of small and medium enterprises and local vendors so that each ringgit committed becomes real capacity and skilled employment for Malaysians.

Related: Malaysian Investment Development Authority (MIDA)