Malaysia attracted RM92.8 billion in approved investments in the first quarter of 2026, with Japan emerging as the largest foreign investor and projects expected to create over 50,000 new jobs.
The Malaysian Investment Development Authority (MIDA) reported that the investments span 1,249 projects across the services, manufacturing and primary sectors. While the total value recorded a marginal 0.2 per cent decline from RM93.0 billion in the same quarter last year, approved projects are expected to create 50,226 new jobs — a 46.7 per cent increase from a year ago.
Foreign investments accounted for 60.5 per cent or RM56.2 billion of total approvals. Domestic investments grew 13.0 per cent year-on-year to RM36.6 billion, representing 39.5 per cent of the total, reflecting growing confidence among Malaysian businesses.
Japan led foreign investors with RM21.5 billion, a sharp rise from RM1.6 billion in 1Q 2025. The People's Republic of China followed with RM10.1 billion, the United States with RM10.1 billion, Singapore with RM6.7 billion and Thailand with RM2.5 billion. MIDA noted that 93.6 per cent of Japanese approved investments were channelled into digital transformation activities.
The services sector was the largest contributor at RM60.8 billion, or 65.5 per cent of total investments, driven by the information and communications subsector which contributed RM38.9 billion. Data centre and cloud computing investments alone accounted for RM34.6 billion across 33 projects.
The manufacturing sector attracted RM24.1 billion across 501 projects and is expected to create 30,468 jobs. Key industries included electrical and electronics (RM6.0 billion), chemicals (RM3.9 billion), machinery and equipment (RM3.5 billion) and food manufacturing (RM3.3 billion).
The primary sector recorded RM7.9 billion in investments across 17 projects, up 418.2 per cent from a year ago, driven by oil and gas activities particularly in Sarawak.
At the state level, Selangor led with RM33.5 billion in approved investments, followed by Johor (RM16.9 billion), Kuala Lumpur (RM16.9 billion), Penang (RM6.2 billion) and Sarawak (RM4.0 billion).
MIDA CEO Datuk Sikh Shamsul Ibrahim Sikh Abdul Majid noted that Malaysia ranked second in Asia after China in the Asia Manufacturing Index 2026, its highest position to date. Over 85 per cent of manufacturing projects approved since 2021 had reached various stages of implementation as of February 2026.
MIDA said it is facilitating a pipeline of 182 potential projects valued at RM38.3 billion and is in active discussions for an additional RM91.0 billion in potential investments.
