Sarawak recorded RM17.6 billion in approved investment last year

KUCHING: Sarawak recorded RM17.6 billion in approved investments across the services, manufacturing, and primary sectors last year, Deputy Premier Datuk Awang Tengah Ali Hasan said today.
He said RM13.5 billion, or 76.6 per cent of the total, came from domestic direct investment (DDI), while foreign direct investment (FDI) contributed RM4.1 billion, or 23.4 per cent.
"The investments, both from DDI and FDI, involved 376 projects and are expected to create over 7,800 jobs," said Awang Tengah, who is also the state International Trade, Industry and Investment Minister, in his winding-up speech in the State Legislative Assembly here today.
He said investments in the services sector accounted for RM7.6 billion, or 43 per cent, closely followed by manufacturing at RM7.5 billion (42.9 per cent), while the primary sector received RM2.5 billion (14.1 per cent).
Despite similar investment values, the manufacturing sector was the largest contributor to employment, generating 6,430 jobs or 81.8 per cent of total jobs created.
"The manufacturing sector recorded key investments in chemical products (urea, melamine, polycrystalline silicon, and biodiesel) worth RM2.9 billion; electrical and electronic (E&E) products at RM1.2 billion; and non-metallic products (clinker, concrete, and cement) at RM800 million," he said.
In the first quarter of this year, the manufacturing sector attracted RM681 million in investments across 24 projects, expected to create more than 900 jobs.
Awang Tengah said 115 manufacturing and related services projects were approved last year, with over 65 per cent already successfully implemented, reflecting strong investment facilitation.
He added that ongoing investments in industrial infrastructure, including industrial parks, logistics, and digital connectivity, would reinforce Sarawak's long-term growth and competitiveness, positioning it as a prime destination for investors seeking stability and strategic market access.
Investor confidence, he noted, remains robust, as reflected in reinvestments totalling RM6.8 billion within the manufacturing sector, primarily in chemical and basic metal industries.
"This underscores strong investor confidence in Sarawak's current business environment and affirms our growing reputation as a competitive and reliable investment destination," he said.
Awang Tengah also said Sarawak's push for renewable energy, especially solar power, has garnered strong investor interest, with leading potential investors from Abu Dhabi, China, and Singapore currently conducting feasibility assessments.
He added that the International Trade, Industry and Investment Ministry is actively streamlining regulatory processes, reducing bureaucracy, and improving policy transparency to enhance business efficiency.
"We are adopting a whole-of-government approach to ensure a unified and strategic advancement of Sarawak's development priorities.
"Concurrently, we are addressing critical gaps in the investment ecosystem, including upgrading key infrastructure and investing in talent development to better align with industry needs.
"These efforts reaffirm our commitment to position Sarawak as a preferred destination for high-quality investments, now and in the years to come," he said.
He added that Sarawak continues to attract investors due to its political stability, rich natural resources, strategic location, and investor-friendly policies.

Try Our AI Features

Explore what Daily8 AI can do for you:

Learn with AIFact CheckingText to SpeechAI Summary

Related Articles

The Star

6 hours ago

• The Star

FDI may soften as global risks mount

PETALING JAYA: The country's foreign direct investment (FDI) is anticipated to remain subdued in the second half of this year (2H25), as foreign investors adopt a cautious stance amid uncertainties surrounding the US tariff policy and escalating conflict in the Middle East. While the baseline 10% tariff on exports to the United States remains in place, the fate of the proposed 24% reciprocal tariff on Malaysia will only be known by early next month. The outcome will be a crucial factor in determining FDI flows into the country. The challenging investment climate is further intensified by the Israel-Iran war, which will likely prompt investors to take a wait-and-see approach before executing their investment strategies. RAM Rating Services Bhd senior economist and head of economic research Woon Khai Jhek RAM Rating Services Bhd senior economist Woon Khai Jhek told StarBiz that the 2H25 could potentially be tougher than the first, especially if US tariffs move into full swing and there is no meaningful rollback of protectionist policies. 'However, the softening is likely to be moderate rather than severe, thanks to a still healthy project pipeline and continued policy support. 'The protectionist US measures, including the prospect of fresh 'Trump‑era' tariffs and renewed geopolitical tensions in the Middle East, will weigh on investment sentiment. 'The global volatility might prompt some multinational companies (MNCs), especially in trade-exposed manufacturing, to defer investment decisions until policy clarity returns,' he added. That said, Woon noted that Malaysia's investment pipeline remains solid, judging by the numbers. Total approved investments stood at RM384.4bil last year, rising further from RM329.5bil in 2023. This performance was substantially higher than the 2010 to 2019 pre-Covid-19 average of RM204.5bil. He said the momentum has continued this year, as investment approval amounted to RM89.8bil in the first quarter (1Q25), outpacing the RM86.6bil in 1Q24. This suggests plenty of projects rolling into 2H25, which should help underpin overall investment growth, he noted. However, FDIs might come under renewed pressure as protectionist rhetoric from the United States and re-shoring push could prompt some MNCs to defer large greenfield or capacity expansion projects. Woon said uncertainty surrounding tariff rates and the countries potentially targeted by US tariffs make investment decisions challenging, especially without clarity on the future policy landscape. 'Regions that are most vulnerable to potential global value chain shifts, such as the highly fragmented electrical and electronics (E&E) sector, face the highest risk of pullbacks. This could affect the sector's expansion plans in the region, including in Malaysia,' he said. OCBC Senior Asean economist Lavanya Venkateswaran OCBC senior Asean economist Lavanya Venkateswaran said FDI inflows are likely to remain subdued in 2H25. She noted that although precise forecasts are difficult, foreign investors are expected to remain cautious in the near term. 'The investment climate is likely to remain challenging in the 2H25, similar to the 1H25. This is mainly because businesses remain in a wait-and-see mode on account of US tarif- related uncertainties. 'There has been a steady stream of foreign investment approvals into Malaysia's E&E manufacturing sector since 2021 and these investment flows are most at risk in the near term, in our view.' That said, Lavanya noted that Malaysia's investment climate remains positive. 'The Malaysian authorities are keen to diversify investment sources away from traditional markets such as the United States towards newer markets such as the Gulf Cooperation Council and Brics economies, while building intra-Asean resilience through initiatives such as the Johor-Singapore Special Economic Zone (JS-SEZ),' she said. Meanwhile, Bank Muamalat Malaysia Bhd chief economist Dr Mohd Afzanizam Abdul Rashid said the investment climate will be extremely challenging, as the 90-day pause on US tariffs is set to end in early July – before the global community can ascertain the final tariff rates. Furthermore, the geopolitical conflict in the Middle East could easily tilt the balance of risks, he said. Domestically, he noted, fiscal consolidation efforts such as fuel subsidy rationalisation and higher expanded sales and service tax will increase the cost of doing business. In a nutshell, business and consumer sentiments are expected to remain guarded in the near term, he added. On the FDIs outlook for the 2H25, Mohd Afzanizam said FDI in the services sector will likely continue to perform well, driven largely by sustained interest in data centres dominating the investment landscape. 'In the 1Q25, approved investment in the services sector rose 39.5%, led by a 326.6% increase in foreign investment,' he said, adding that manufacturing FDI is expected to face a challenging outlook in the near term owing to uncertainties in global demand. In terms of domestic direct investment (DDI), RAM's Woon noted that while DDI will not be immune to pressures from external factors, it is anticipated to be more resilient than FDI in the 2H25. Around 55% of total approved investments in 2024 were attributed to DDI, outweighing FDI after being overshadowed by the surge in FDI approvals over the preceding three years. The momentum of DDI is also gaining, as local investment approvals jumped to RM213.1 bil in 2024 from RM141.1bil the previous year. 'Coupled with the government's recent focus on promoting DDI, this could provide a stronger lift for domestic investors, who are well-placed to fill the gap left behind by FDI. 'Furthermore, with various government efforts and masterplans like the New Industrial Master Plan 2030 and the National Energy Transition Roadmap (NETR) already in place, this suggests robust policy support and investments in the nation's development. 'Thus, we have ample reasons to be optimistic about the future trajectory of Malaysia's local investments,' Woon said. OCBC's Lavanya said there could be a divergence between domestic and foreign investment inflows in the 2H25. 'While domestic investors focused on the US markets will likely remain wary of further expansion, investors catering to other markets may see opportunities for expansion. 'Domestic investors could also look to diversify across the country, capitalising on initiatives such as the JS-SEZ,' she noted. To attract more investments into Malaysia, RAM's Woon said the government should focus on creating a conducive investment environment and offering targeted policy support. 'Businesses need clear, consistent policies to make long-term investment decisions. Reducing bureaucratic inefficiencies and ensuring regulatory transparency will help attract both domestic and foreign investors. 'Additionally, continued investment in physical and digital infrastructure (such as 5G rollout, industrial parks and efficient logistics) is crucial in attracting investments in high-value sectors. 'Besides that, talent development and workforce readiness are critical to ensuring Malaysia remains an attractive investment destination,' he said, adding that expanding training programmes, upskilling initiatives and fostering industry-academic collaborations will help ensure the country remains competitive. Lavanya said the initiatives adopted by the authorities so far are steps in the right direction. The continued focus on structural reforms – such as prudent fiscal policies, raising value-add in key sectors such as E&E, and encouraging better spatial distribution of growth across the country – would hold the economy in good stead over the medium term. She added that the government is keen to diversify its investment and trade partnerships beyond traditional partners such as the United States. This is underscored by initiatives to boost intra-Asean connections, deepen engagement with the Brics+ alliance, and deepening connections with the GCC economies. These measures should help build economic resilience in times of heightened uncertainties, she said.

Malay Mail

18 hours ago

• Malay Mail

OCBC commits RM3b more by end-2025 after RM11b investment in JS-SEZ

JOHOR BAHRU, June 22 — OCBC Group has committed more than RM11 billion into businesses in Johor since early 2024, as part of its commitment to support the development of the Johor-Singapore Special Economic Zone (JS-SEZ). The bank in a statement today said it plans to extend an additional RM3 billion in financing by the end of 2025 to support investments in key sectors such as real estate, oil and gas, manufacturing, and data centres within the JS-SEZ. OCBC chief executive officer (CEO) Helen Wong said the group has a long history in Johor dating more than a century, with OCBC Malaysia's first branch established in Johor in 1917. Today, the group operates eight branches in the state, out of 38 branches across Malaysia, she added. While reiterating the group's long-term support to JS-SEZ, Wong emphasised that OCBC's One Group approach, which brings together the collective strengths of OCBC Bank, Great Eastern Holdings (insurance subsidiary), Bank of Singapore (private banking arm), and leasing and wealth management capabilities, uniquely positions the group to support business growth and cross-border collaboration. The commitment announcement was made during a courtesy visit by Wong along with senior executives of OCBC Group to Johor Menteri Besar Datuk Onn Hafiz Ghazi at his official residence in Saujana here. Welcoming the move, Onn Hafiz described OCBC's commitment as a vote of confidence in Johor's investment climate. 'The Group's commitment of over RM11 billion, with another RM3 billion targeted by year-end, reflects strong private sector support for our economic vision. We look forward to deepening this collaboration,' he said. Meanwhile, OCBC Bank (Malaysia) Bhd CEO Tan Chor Sen said the group had already taken proactive steps to promote the JS-SEZ to global investors, even before the formal agreement was signed in January 2025. This includes engagements with key stakeholders such as Iskandar Regional Development Authority, Malaysian Investment Development Authority, and Invest Johor. He added that OCBC's extensive global network, particularly in Greater China, positions it well to facilitate inbound investment and business expansion into Malaysia. Great Eastern Life Assurance (Malaysia) Bhd CEO Datuk Koh Yaw Hui said as part of the OCBC Group, Great Eastern is well-positioned to support the initiative through a comprehensive range of life, general and takaful insurance offerings aligned with the economic development of the region. The JS-SEZ is a flagship bilateral initiative aimed at enhancing cross-border trade, investment, and infrastructure development, with a focus on high-impact and innovation-driven sectors. — Bernama

BusinessToday

18 hours ago

• BusinessToday

‘3rd Times The Charm' MITI Minister Drops Hints From Washington

Malaysia and the US have made further strides in resolving ongoing tariff issues during a third high-level meeting held on June 19 between Malaysian trade officials and US Trade Representative Jamieson Greer. Investment, Trade and Industry Minister Tengku Datuk Seri Zafrul Tengku Abdul Aziz said the latest meeting follows earlier discussions in Washington and at the APEC Ministerial Meeting in Jeju, South Korea, centred specifically on tariff-related matters impacting bilateral trade. In a statement shared on X, Tengku Zafrul said the Malaysian delegation emphasised that the dialogue reinforced the importance of finding a 'fair and mutually beneficial' solution. 'Negotiations will continue in a prudent and professional manner for the common good,' Tengku Zafrul added. The talks mark a continued effort to de-escalate trade frictions and enhance economic cooperation, particularly as Malaysia seeks to safeguard its export competitiveness while navigating the global trade landscape. Further discussions are expected as both sides work toward a resolution that supports long-term trade stability. Related