Malaysia’s FDI dropped in 2020 while the accumulated investment expanded to almost RM700 billion
Foreign Direct Investment (FDI) in Malaysia registered a net inflow of RM14.6 billion in 2020 as compared to RM32.4 billion in the previous year, contracted by 54.8 per cent partly as repercussion from the global economic uncertainties due to the pandemic situation. The decreased in FDI flows was pulled by lower equity and investment fund shares and higher loans extended to affiliates abroad. In terms of position, FDI expanded to RM698.8 billion as at end of 2020 (2019: RM687.8 billion). Meanwhile, investment income declined to RM44.6 billion from RM60.5 billion in 2019.
Services and Manufacturing sectors were the main contributors for FDI flows in 2020, followed by Mining & quarrying sector. The investment in Services sector was particularly in financial and utilities activities, while Manufacturing was largely on electrical, transport equipment and other manufacturing subsector. Main countries for FDI flows were Singapore, Thailand and China.
The FDI position as at end of 2020 was RM698.8 billion, whereby Services sector was the largest contributor precisely in financial and wholesale & retail trade activities. This was followed by Manufacturing sector with electrical, transport equipment and other manufacturing as the main subsector. Singapore, Hong Kong and Japan remained as the largest investor countries for FDI position.
Investment income decreased to RM44.6 billion from RM60.5 billion in previous year, due to lower income received by foreign companies. Manufacturing and Services were the main sectors, while investors from Singapore, United States of America and Hong Kong gained the highest earnings in 2020.
The full publication of the Statistics of Foreign Direct Investment in Malaysia 2020 can be downloaded through eStatistik portal.
DATO' SRI DR. MOHD UZIR MAHIDIN
CHIEF STATISTICIAN MALAYSIA
DEPARTMENT OF STATISTICS, MALAYSIA
18 June 2021
Mohd Yusrizal Ab Razak
Public Relation Officer
Strategic Communication and International Division
Department of Statistics, Malaysia
Tel : +603-8885 7942
Fax : +603-8888 9248
E-mail : yusrizal.razak[at]dosm.gov.my