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MALAYSIA
Investment Performance 2011

GLOBAL INVESTMENT SCENARIO

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Global FDI Inflows in 2011 Surpass Pre-crisis Average (2005-2007)

GLOBAL FDI INFLOWS
2,200 1,971 1,744 1,462 1,200 1,185 983 700 1,290 1,700 1,509 1,900

1,700
US$ billion

200 2005
Note:

2006

2007

2008

2009

2010

2011*

2012

2013

* Preliminary Forecast

Source: UNCTADs Global Investment Trends Monitor, 24 January 2012

Global Investment Scenario

FDI Inflows to Malaysia Surged by 12.3 per cent in 2011

MALAYSIAS FDI INFLOWS
35,000 30,000 25,000
RM million

32,925 29,081 24,134 22,230 29,322

20,000 15,000 10,000 5,000 0

5,040 2007 2008 2009 2010 2011

2006

Global Investment Scenario

Source: DOSM

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Manufacturing Sector Continues to be the Largest Contributor to FDI Inflows

FDI INFLOWS TO MALAYSIA BY SECTOR
2010 2011 Percentage of Growth (%)

RM million

Agriculture, Forestry and Fishing Mining and Quarrying Manufacturing Services TOTAL
5

83 3,138 16,107 9,994 29,322

123 7,301 16,509 8,992 32,925

48.2 132.7 2.5 (10.0) 12.3

Source: DOSM

Global Investment Scenario

TOTAL INVESTMENTS APPROVED 2011

Manufacturing, Services And Primary Sectors

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Investments Surged by 40.7 per cent

TOTAL INVESTMENTS APPROVED 2011

RM148.6 BILLION
4,964 PROJECTS 149,496 JOBS
7
Total Investments Approved 2011

Approved Domestic Direct Investments Continue to Exceed FDI

Domestic Investments (RM61.1 billion) 55.4% 44.6%

2010

Domestic Investments (RM82.3 billion)

2011

57.9% 42.1%

55.4% 44.6%

Foreign Investments (RM44.4 billion) 8

Total Investments Approved 2011

Foreign Investments (RM66.3 billion)

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Total Investments Approved by Sectors RM148.6 billion

Manufacturing 56.1 (37.8%)

Primary 28.1 (18.9%)

Services 64.4 (43.3%)

Total Investments Approved 2011

Approved Investments by State

RM Million
Sarawak Penang Sabah Selangor Johor Perak Negeri Sembilan Kedah Melaka Pahang Kuala Lumpur Terengganu Kelantan Labuan Perlis

14,351 14,038 13,682 13,465 12,637 9,939 7,184 6,403 4,825 3,215 2,970 1,405 444 107 34 0 3,000 6,000 9,000 12,000 15,000

Note: Approved investments does not include investments that cut across state boundaries

10

Total Investments Approved 2011

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APPROVED INVESTMENTS IN THE MANUFACTURING SECTOR

Approved Investments in the Manufacturing Sector Remain High

RM56.1 BILLION
846 PROJECTS 100,533 JOBS
12
Approved Investments in the Manufacturing Sector

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Approved Investments in the Manufacturing Sector Continue a Recovery Trend (19 per cent growth)
RM Billion
70 59.9 60 50 40 30 20 10 0 2006 2007 2008 2009 2010 2011 46.0 32.6 47.2 62.8 56.1

13

Approved Investments in the Manufacturing Sector

Malaysia Continues to Attract High Levels of Foreign Investments

2000 2011

41.6%

58.4%

39.0%

61.0%

Domestic Investments (RM14.2 billion)

Foreign Investments (RM19.9 billion)

Domestic Investments (RM21.9 billion)

Foreign Investments (RM34.2 billion)

14

Approved Investments in the Manufacturing Sector

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E&E Industry Continues to Dominate Investment Inflows

RM Billion
Food Textiles Paper, Printing & Publishing Non-Metallic Petroleum E&E E&E Chemicals Non-Metallic Fabricated Metal

1.2 1.5 1.8 2.3 12.3

Food

2.7 3.7 20.1

Chemicals

5.0 6.0

Petroleum

7.2
Natural Gas

Transport

9.9
Basic Metal

2000
15
Approved Investments in the Manufacturing Sector

2011

Approved Projects in E&E Industry by Sub-Sector, 2011

Electrical Products 9,724 (49%)

RM Million

Consumer Electronics 1,847 (9%) Electronic Components 7,195 (36%)

16
Approved Investments in the Manufacturing Sector

Industrial Electronics 1,293 (6%)

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72 per cent of FDI Comes From Asian Countries

RM Million
10,102 10,000 8,000 6,000 4,000 2,000 0 Japan
17

5,185 2,509 2,478 2,171

Republic of Korea

USA

Singapore

Saudi Arabia

Approved Investments in the Manufacturing Sector

Significant Increase in Approved Domestic Direct Investments

RM21.9 Bil (2011)

RM18.1 Bil (2010)

21%
Growth in DDI in line with ETP and 10MP

18

Approved Investments in the Manufacturing Sector

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New Investments and Reinvestments

Total: RM56.1 billion

Expansion/ Diversification Projects (RM23.0 billion)

New Projects (RM33.1 billion)

(59.0%)

(41.0%)

19

Approved Investments in the Manufacturing Sector

Economic Corridors Attracted 62 per cent of Total Investments Approved

RM15.3 billion RM8.2 billion RM5.7 billion RM4.6 billion RM0.9 billion
Note: Investments in Projects Approved Manufacturing Licence

Total: RM34.7 billion

20

Approved Investments in the Manufacturing Sector

10

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Approved Investments in the Manufacturing Sector by Location

RM Million
Penang Selangor Sarawak Johor Kedah Negeri Sembilan Melaka Pahang Terengganu Perak Sabah Kuala Lumpur Kelantan Perlis
0 1,393 (15) 985 (30) 921 (27) 308 (19) 129 (5) 23 (3) 1,000 2,000 3,000 4,000 5,000 6,000 7,000 8,000 9,000 10,000 3,038 (25) 4,364 (39) 6,585 (188) 6,136 (42) 5,905 (38) 9,106 (109) 8,741 (263) 8,453 (43)

Note : Figures in parentheses refer to number of projects approved

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Approved Investments in the Manufacturing Sector

Implementation of Projects Approved Between 2007-2011 as at 31 December 2011

76.4% of approved projects were implemented

Production 3,121 (71.1%)

Total: RM258.6 billion

Machinery Installation & Factory Construction 234 (5.3%)

Site Acquired 76 (1.7%)

Active Planning 779 (17.8%)

Not Implemented 180 (4.1%)

22

Approved Investments in the Manufacturing Sector

11

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Quality Employment Created in Projects Approved During 2007-2011 and Implemented

Total Employment: 338,555
68% in the Managerial, Technical, Supervisory and Skilled Categories
Skilled Workers 167,576 (49%) Others 106,821 (32%)

Technical & Supervisory 42,321 (13%)

Managerial & Professional 21,837 (6%)

Note: Category of Employment from Projects Approved Between 2007-2011 and Implemented as at 31 December 2011

23

Approved Investments in the Manufacturing Sector

Quality Employment Created in Projects Approved During 2010-2011 and Implemented

Total Employment: 72,704
73% in the Managerial, Technical, Supervisory and Skilled Categories
Skilled Workers 38,857 (53%)

Others 19,454 (27%)

Technical & Supervisory 9,618 (13%)

Managerial & Professional 4,775 (7%)

Note: Projects Approved Between 2010 & 2011 and Implemented as at 31 December 2011

24

Approved Investments in the Manufacturing Sector

12

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APPROVED INVESTMENTS IN THE SERVICES SECTOR

Approved Investments in Services Sector Underpin Economic Growth

RM64.4 BILLION

3,957 PROJECTS

43,784 JOBS

Note: Statistics on investments in the services sector are preliminary.

26

Approved Investments in the Services Sector

13

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Services Sector Registered Significant Increase in Investments- Almost Reaching the Pre-Crisis Level
RM Billion
70 60 50 40 30 20 10 0 2006
Note: * Preliminary

66.4 55.5 50.1 38.7 36.7 64.4

2007

2008

2009

2010

2011*

27

Approved Investments in the Services Sector

The Share of Approved Foreign Investments in the Services Sector Increases

2006
Domestic Investments (RM49.5 billion) Domestic Investments (RM48.2 billion)

2011

89.2%

74.8%

25.2% 10.8% Foreign Investments (RM6.0 billion)

28
Approved Investments in the Services Sector

Foreign Investments (RM16.2 billion)

14

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Real Estate and Transport Remain the Major Sub-Sectors

RM Billion
Others Distributive Trade MSC Status Others Real Estate

3.9 18.0 4.6

Education

Real Estate

9.4
Financial Services Telecommunications

16.9

Energy

Telecommunications

4.8 7.0 11.6

Energy Transport

6.0 6.1 9.6

Global Operations Hub

11.7
Transport

Financial Services

2006
29
Approved Investments in the Services Sector

2011

APPROVED INVESTMENTS IN THE PRIMARY SECTOR

15

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Oil & Gas Propels Investments in the Primary Sector

Total: RM28.1 billion

Mining RM26.7 billion

Plantation & Commodities

RM989.5 million

Agriculture

RM417.5 million

Note: Statistics on investments in the primary sector are preliminary.

31

Approved Investments in the Primary Sector

PRIVATE INVESTMENTS
Target & Achievement

16

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Realised Private Investments* Surpass Target

Target for 2011

Investments Realised

113.3%
RM 83.0 billion
Source: DOSM Note: * Gross Fixed Capital Formation (GFCF) + Estimates

RM 94.0 billion +

33

Private Investments

OUTLOOK

17

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Outlook
Malaysias economy is projected to sustain a growth of between 5% and 6% in 2012.

Global FDI inflows expected to strengthen from 2011 till 2013.

(UNCTADs World Investment Prospects & Survey, 2011-2013)

Malaysia is ranked as 21st top host economies for FDI in 2011-2013.

(UNCTADs World Investment Prospects & Survey, 2011-2013)

35

Outlook

Outlook
contd Malaysias strong performance in international rankings will support investment promotion drive: - 10th most attractive destinations for FDI
(A.T. Kearneys FDI Confidence Index)

- 18th in ease of doing business

(World Bank Doing Business Report)

- 21st most competitive economy

(WEF Global Competitive Report)

Efforts to be intensified to target and attract industries in which Malaysia has strong foundations and in new growth areas to achieve the target of RM115 billion per annum.
36
Outlook

18

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Thank You

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