Investments and FDIs: Are These Real?

Source: BNM Annual Report 2023

FDI inflows...

Source: BNM Annual Report 2023

In slide 1 above on investments, total approved investments improved to RM330 billion. But of this amount, only about 30% gets implemented in a two-year time frame. The bulk is in E&E and ICT. The figure of 74% “are in various stages of implementation” is just confusing, not a factual evidence based on results. Other investments public/private sectors are long-term in nature (2026/31). 

In slide 2 about FDI inflows by type of investments, there is almost a 50% decline in 2023 (from the previous year). The source countries are Singapore, Hong Kong, Japan and China. The services sector (financial, ICT and healthcare) was the primary beneficiary.

We can’t depend on FDIs and investments, the economic engine has to shape consumption, without creating inflationary pressures; more policies to improve the ringgit; and, enhance exports of goods and services (which declined in 2023).

Reference:

BNM Annual Report 2023