Malaysia Achieves Record RM575 Billion in Approved Investments, Signalling Strong Investor Confidence

KUALA LUMPUR, Nov 10: Malaysia has achieved its highest-ever level of approved investments, reaching RM575 billion over the past 18 months, a clear sign of rising investor confidence, said Economy Minister Datuk Seri Amir Hamzah Azizan.

Speaking during the Economy Ministry’s Budget 2026 committee stage winding-up session in Parliament on Monday, Amir Hamzah said the country’s investment conversion rate from committed to approved projects has surged from about 70% in 2022 to around 85% this year.

“This means that what we have attracted is being realised on the ground,” he told the Dewan Rakyat, noting that the impact of these investments is already reflected in national growth data.

He highlighted that the construction sector has recorded double-digit growth this year, expanding between 10% and 16% across the first three quarters, driven by factory construction and infrastructure development stemming from earlier investment approvals.

Amir Hamzah said Malaysia remains optimistic about economic prospects, with steady growth supported by strong investment flows and rising domestic demand.

Under the 2026 Development Estimates, the government has allocated RM83 billion, with core development expenditure increasing to RM57.6 billion from RM55.7 billion in 2025.

He said newly approved basic development projects are expected to rise from 1,967 in 2025 to 2,371 next year, reflecting stronger capital expenditure and regional development focus.

The Economy Ministry’s development allocation under Budget 2026 stands at RM2.12 billion, a 72.7% increase compared to the revised 2025 allocation. The jump, he said, was due to the completion of several ongoing projects this year.

Amir Hamzah also shared that Malaysia’s GDP is projected to grow by 5.2% in the third quarter of 2025, bringing the nine-month average to around 4.7%.

The government expects GDP to expand between 4% and 4.8% in 2025 and between 4% and 4.5% in 2026, supported by a stable labor market, moderate inflation, and resilient domestic consumption.

During the session, Datuk Awang Solahuddin Hashim (Perikatan Nasional Pendang) raised questions about the distinction between MoUs and MoAs and whether the investment figures included withdrawn projects such as Tesla’s.

Amir Hamzah also announced that the government will table a Climate Change Bill next year, aimed at establishing a national baseline for carbon emissions monitoring. The legislation will create new opportunities for industries to reduce their carbon footprint.

“Carbon capture, utilisation and storage (CCUS) will be an important part of our industrial strategy,” he said.
“It will help trap and store carbon while creating new opportunities in the green economy.”

Under Budget 2026, a carbon tax will be introduced targeting high-emission industries, beginning with the iron, steel, and energy sectors.

Amir Hamzah said Malaysia is fully committed to developing the CCUS industry, which could create high-skilled jobs and support green and low-carbon growth, particularly in hard-to-abate sectors.

“CCUS can accelerate regional development and position Malaysia as a regional leader in this emerging industry,” he said, adding that small businesses affected by the carbon tax will receive government support through a Green Transition Fund managed by the Finance Ministry.

On regional development, the minister said RM73.6 million has been allocated for five projects in Iskandar Malaysia, including youth facilities in Johor Baru and Iskandar Puteri, a talent ecosystem study, and the establishment of the Iskandar Malaysia Analytics Centre.

He added that road upgrades at Ladang Air Manis and improvements to the Eastern Dispersal Link interchange are also part of the upcoming projects.

Amir Hamzah concluded that Malaysia’s record-breaking investment performance underscores the country’s growing economic resilience and continued appeal as a regional investment hub.