KUALA LUMPUR: InvestKL attracted a record-setting RM8.7bil in foreign direct investment (FDI) in 2023, which more than tripled than the previous year, spearheaded by investments from 12 global corporations from America, Europe and Asia.
Following the outperformance, InvestKL chief executive officer Datuk Muhammad Azmi Zulkifli is upbeat on the investment climate in 2024, with the agency looking to attract more land-intensive projects into Malaysia.
Muhammad Azmi foresees continued inflows of FDI into Greater Kuala Lumpur (KL) this year, although he stopped short of disclosing the target.
In 2022, InvestKL brought in a total investment of RM2.79bil, which was the previous all-time high until it was eclipsed by 2023’s RM8.7bil.
Among the 12 multinational corporations (MNCs) that invested in 2023 were automobile manufacturer Chery Automobile Co Ltd and digital and technology firm Cognizant, as well as financial company and UK-based stock exchange, London Stock Exchange Group.
From the Americas, technology and consulting services-related investments led the charge in 2023, showcasing a strong interest in Malaysia’s digital economy.
European investments spanned healthcare technologies, financial services and infrastructure, highlighting the region’s focus on innovation and sustainable development.
Asian contributions were notably varied, with investments in automotive, environmental services, healthcare devices as well as travel and tourism.
Muhammad Azmi said investors’ confidence is rooted in Malaysia’s investor-friendly policies and diverse and multi-lingual talent pool, as well as the current ecosystem developing across the country.
Moving forward, he said the group’s strategic direction in 2024 is to place emphasis on attracting global services from pivotal sectors such as digital and technology, engineering, health tech and renewable energy, as well as human capital development.
Muhammad Azmi said it is crucial to consider how to frame and interpret global services in the Malaysian context, as it is believed that the services sector will forge ahead in 2024.
“With the services sector comprising 58% of the nation’s gross domestic product (GDP), it’s something that we need to look at as to how we can continue to move up the value chain,” he said during his presentation of InvestKL’s 2023 performance update.
As of today, Muhammad Azmi said over 20 out of 139 MNCs in total run their production facilities outside Greater KL, and it was noted that other companies were currently in discussions as well.
“So don’t just look at KL as that gateway to set up your regional hub over here, but expand your activities within Malaysia and all across the region,” he told the media.
Since its inception in 2011, InvestKL has secured a cumulative FDI of RM29.79bil.
To date, 66% of the investment, or RM19.74bil, has materialised, leading to the creation of over 27,000 executive jobs.
Muhammad Azmi pointed out that 80% of the 27,000 jobs are occupied by Malaysians.
“What we want to see is how we can pull the expertise to be from here, instead of having expertise within those particular sectors sitting outside of Malaysia,” he added.
He further stated that it was also pivotal to examine the mechanics and quality of incoming investments in order to align their dynamics with the country’s landscape.
“We cannot just take every investment that we get, we have to be selective too in regards to KL as a location, Malaysia as a destination, and to see how we can best match those investments into the whole landscape,” he said.
In 2023, the secured FDI of RM8.7bil generated 8,329 high-skilled jobs and out of the total, 81% of the positions were in the digital and technology sectors.
This was followed by life sciences, healthcare and medical tech contributing to 6%, and financial services accounting for another 6%.
InvestKL is an agency under the Investment, Trade and Industry Ministry.
