Key Points

The Malaysian Investment Development Authority (MIDA) said in a statement that a total of 3,011 projects across the manufacturing, services, and primary sectors are expected to generate 89,294 new jobs, Xinhua News Agency reported.

Foreign investments accounted for a significant 56.1 per cent or 106.8 billion ringgit of the total approved investments, while domestic investments contributed 43.9 percent or 83.5 billion ringgit.

The foreign investments surged 43.5 per cent year-on-year, with Singapore emerging as the leading source country with 43.4 billion ringgit.

The services sector's share accounts for 118.6 billion ringgit of the total approved investments, showing a significant 25.6 per cent year-on-year increase.

The manufacturing sector's share of approved investments is 68.4 billion ringgit, growing 13.8 per cent year-on-year.

"Malaysia's 18.7 per cent year-on-year growth in approved investments for the first half demonstrates foreign and domestic investors' continued trust in our clear policies and long-term industrial reform agenda," said Tengku Zafrul Aziz, minister of Investment, Trade and Industry (MITI).

"These have contributed to Malaysia's strong economic fundamentals, which have clearly held up our economy even amid a challenging global environment," he added. (1 ringgit equals 0.24 US dollar)

Last month, Malaysian Prime Minister Anwar Ibrahim said Malaysia will prioritise working with reliable partners and strengthening resilience in its semiconductor sector to shield it against external disruptions and trade tensions.

Deepening regional cooperation through the Association of Southeast Asian Nations (ASEAN) and other mechanisms will also help the sector resist external shocks and facilitate development through research and development, as well as by creating demand as companies in the region upskill and improve their own capabilities, Anwar on Thursday said in his keynote speech at the ASEAN Semiconductor Summit 2025.

"True supply chain resilience means eliminating weak links, either by producing what we need effectively or securing reliable partnerships to access what lies beyond our domestic capabilities. In these volatile times, diversifying our options is not just wise, it is essential," he said.

"Our established semiconductor ecosystem is well poised to help us move beyond an FDI-first model and focus on building homegrown champions. This does not mean turning away investors, but being more strategic and prudent. We want long-term collaborators who grow with us, and we will continue to welcome partners who strengthen our supply chains, transfer their knowledge and technologies," he added.

Anwar added that Malaysia is working to expand its pool of trained engineers to address shortages, and that the country is also contributing to a broader ASEAN-wide effort - leveraging the grouping's collective strengths rather than acting individually - to more effectively address shared challenges.

"Malaysia must build on its local strengths to serve a larger regional and global purpose. By strengthening our domestic ecosystem, we are also helping to raise ASEAN's industrial capacity," he said.

- IANS