Malaysia started 2026 on a strong note, recording RM92.8 billion in approved investments across 1,249 projects during the first quarter, reflecting continued investor confidence in the country’s long-term growth prospects.
While overall approved investments remained largely stable compared with the same period in 2025 (-0.2% year-on-year), investment quality continued to strengthen. Approved projects are expected to create 50,226 new jobs—an increase of 46.7% year-on-year, demonstrating stronger labour market outcomes and sustained investor confidence.
Malaysia maintained a balanced investment profile, with foreign investments contributing RM56.2 billion (60.5%), while domestic investments grew 13.0% year-on-year to RM36.6 billion (39.5%), signalling growing confidence among Malaysian businesses.
Japan was the largest foreign investor in Q1 2026 with RM21.5 billion – more than thirteen times higher than the same period last year. China, the United States, Singapore and Thailand completed the top five, reinforcing Malaysia’s position as a preferred investment destination in ASEAN and the wider Asia-Pacific region.
Investment momentum remained broad-based, with Selangor, Johor, W.P. Kuala Lumpur, Pulau Pinang and Sarawak recording the highest approved investments, highlighting the continued strength of Malaysia’s key investment corridors.
The services sector remained the largest contributor, recording RM60.8 billion or 65.5% of total approved investments.
The information and communications led the sector with RM38.9 billion, driven by continued demand for AI, cloud computing and digital transformation. Data centres and cloud computing alone accounted for RM34.6 billion across 33 projects, representing almost 89% of approvals within the subsector.
Malaysia’s growing digital ecosystem, regional connectivity and investor confidence continue to support strong momentum in digital investments.
The manufacturing sector secured RM24.1 billion across 501 projects, reflecting sustained investor interest in advanced manufacturing and high-technology industries.
While the exceptionally high investment base in Q1 2025 resulted in a lower overall investment value, the number of approved projects increased significantly, indicating a broader pipeline of manufacturing investments.
The sector also continued to create higher-value employment, with a growing share of managerial, technical and supervisory (MTS) positions and more jobs offering monthly salaries exceeding RM5,000.
Manufacturing investments continued to be driven by electrical and electronics (E&E), chemicals and chemical products, machinery and equipment, food manufacturing, and transport equipment, reinforcing Malaysia’s position as a regional hub for advanced manufacturing and global supply chains.
The primary sector attracted RM7.9 billion in approved investments, accounting for 8.5% of total approvals.
The sector recorded a significant 418.2% year-on-year, driven mainly by offshore oil and gas exploration and development activities in Sarawak. The strong performance reflects renewed investor interest in Malaysia’s upstream energy sector amid heightened global energy security concerns and continued efforts to diversify energy supply across the Asia-Pacific region.
Malaysia continues to strengthen its investment ecosystem through sustained growth in digital infrastructure, semiconductors, renewable energy and advanced manufacturing.
National initiatives such as the New Industrial Master Plan (NIMP) 2030, the New Incentive Framework (NIF) and the #InvestLokal initiative continue to support quality investments, ecosystem development and long-term value creation.
Malaysia’s investment pipeline remains robust.
As at 5 May 2026, MIDA was facilitating 182 potential projects with proposed investments totalling RM38.3 billion.
A further RM91.0 billion in potential investment leads remains under active negotiation, reflecting sustained investor confidence in Malaysia’s long-term prospects.
Malaysia continues to distinguish itself not only by attracting quality investments but also by successfully translating approvals into implementation.
Between 2021 and February 2026, the National Committee on Investment (NCI) approved 5,148 manufacturing projects. Of these, 85% have progressed to various implementation stages, including production, factory construction and machinery installation.
Projects approved in 2025 have already achieved a 70.8% implementation rate, consistent with the typical 18- to 24-month investment development cycle.
Malaysia’s Q1 2026 investment performance demonstrates the country’s continued ability to attract quality investments despite global uncertainty.
Supported by stronger domestic investment, sustained foreign investor confidence and strong momentum in high-value industries, Malaysia remains well positioned to strengthen its role as a leading investment destination in the region.
For more details, please visit https://www.mida.gov.my/media-release/malaysia-attracts-rm92-8-billion-in-q1-2026-approved-investments-expected-to-create-over-50000-new-jobs-domestic-investments-up-13/
