2019 GLOBAL & MALAYSIAs FDI INFLOWS GLOBAL FDI INFLOWS 2019 - PowerPoint PPT Presentation

M A L AY S I A I N V E S T M E N T P E R F O R M A N C E R E P O RT 2019

GLOBAL & MALAYSIA’s FDI INFLOWS

GLOBAL FDI INFLOWS 2019 US$ Billions 3,000 Global FDI registered at $1.39 trillion in 2,500 2019, 1% decline from the revised 2,034 1,919 $1.41 trillion in 2018 2,000 1,365 1,561 1,470 1,431 1,357 1,497 1,410 1,394 1,500 1,000 1,413 1,394 500 - 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019* 2019* 2018 US$ billion * Preliminary Estimates Source: UNCTAD Global Investment Trends Monitor 696 695 683 643 501 For 2019, FDI inflows to developing Asia  473 accounted for one-third of global FDI, despite significant declines in investment to Hong Kong and China from divestments 57 34 Southeast Asia continued to be the region’s  growth engine, registering a 19% increase World Developed Developing Developing Transition Economies Economies Asia Economies * Preliminary Estimates Source: UNCTAD Global Investment Trends Monitor 3 MALAY LAYSI SIA A INVES ESTMEN ENT PERFORMANCE E REPO PORT 2019

DESPITE THE GLOBAL CHALLENGES, MALAYSIA CONTINUES TO RECEIVE INTERNATIONAL ACCOLADES AND GOOD RATINGS IN 2019 27 th among 141 countries in 2 nd place in Southeast Asia 12 th in the World Bank’s Global Competitiveness Index by the US Chamber of Ease of Doing Business 2020 (GCI) by World Economic Commerce’s Global Report Forum’s 2019 Global Innovation Policy Centre’s 7 th Competitiveness Report • Improved to 4 th position in Annual Intellectual Property Asia after Singapore, Hong (IP) Index Second in ASEAN after • Kong & South Korea Singapore 4 MALAY LAYSI SIA A INVES ESTMEN ENT PERFORMANCE E REPO PORT 2019

APPROVED INVESTMENTS IN THE ECONOMY, 2019

TOTAL APPROVED INVESTMENTS IN THE ECONOMY, 2019 1.7% increase in approved investments from RM204.4 billion DDI RM125.5 billion (60.37%) in 2018 to RM207.9 billion in 2019 RM207.9 FDI and DDI increased by 2.9% billion and 1.1% from RM80.1 billion FDI RM82.4 billion (39.63%) and RM124.2 billion respectively in 2018 DDI assumes greater role in RM207.9 billion investments complementing FDI in driving Malaysia’s investment agenda 5,140 projects 124,443 new jobs 6 MALAY LAYSI SIA A INVES ESTMEN ENT PERFORMANCE E REPO PORT 2019

TOTAL APPROVED INVESTMENTS IN THE ECONOMY BY SECTOR Services sector maintained its position as the largest contributor with more than half of the country’s total MANUFACTURING approved investments RM82.7 billion (39.8%) SERVICES RM118.1 billion (56.8%) Manufacturing sector continued to be a major contributor to the nation’s export earnings with 365 export-oriented projects approved, an increase of 65.2% from 2018 PRIMARY RM7.0 billion (3.4%) Note: Due to rounding, figures presented in this slide may not add up to the total provided 7 MALAY LAYSI SIA A INVES ESTMEN ENT PERFORMANCE E REPO PORT 2019

APPROVED INVESTMENTS IN THE ECONOMY MAJOR SOURCES OF FDI USA, PRC and Japan were the largest contributors accounting for 66.3% of total 26.8 foreign investments RM billion 15.7 12.1 6.4 5.3 2.2 1.4 1.3 1.0 0.95 USA PRC Japan Singapore Taiwan UK Hong Kong Netherlands Republic of Spain Korea Note: Excluding Tax Havens 8 MALAY LAYSI SIA A INVES ESTMEN ENT PERFORMANCE E REPO PORT 2019

APPROVED INVESTMENTS IN THE ECONOMY BY STATES  Selangor recorded the highest approved investments  Selangor, Pulau Pinang, Johor & W. P. Kuala Lumpur contributed more than 60% of total approved investments RM14.7 bil RM0.53 bil RM2.5 bil RM12.4 bil RM1.4 bil RM33.7 bil RM10.2 bil RM9.3 bil RM47.8 bil RM8.9 bil RM7.0 bil RM21.6 bil RM2.2 bil RM24.4 bil Note: The total may not tally as the breakdown by states for the remaining W.P. Putrajaya = RM254.6 mil investments are not available W.P. Labuan = RM128.8 mil 9 MALAY LAYSI SIA A INVES ESTMEN ENT PERFORMANCE E REPO PORT 2019

APPROVED INVESTMENTS IN THE ECONOMY TOP 10 STATES RM billion 47.8 Selangor Pulau 33.7 Pinang 24.4 Johor W.P. Kuala 21.6 Lumpur 14.7 Kedah 12.4 Sabah 10.2 Perak 9.3 Pahang 8.9 Sarawak Negeri 7.0 Sembilan 10 MALAY LAYSI SIA A INVES ESTMEN ENT PERFORMANCE E REPO PORT 2019

MANUFACTURING SECTOR

TOTAL APPROVED INVESTMENTS IN THE MANUFACTURING SECTOR, 2019 Malaysia continued to attract healthy level of investments into the manufacturing sector with 37.0% FDI RM53.9 billion (65.2%) increase in number of projects from 721 recorded in 2018 to 988 in 2019 RM82.7 FDI made up nearly two-third of billion total investments DDI RM28.8 billion (34.8%) 108 projects with investments of RM100 million above, an increase of 33.3% from 2018 RM82.7 billion investments New jobs in managerial, technical and supervisory (MTS) roles increased by 988 projects 24% to 27,843 from 22,449 in 2018 78,606 new jobs PORT 2019 12 MALAY LAYSI SIA A INVES ESTMEN ENT PERFORMANCE E REPO

TOTAL APPROVED INVESTMENTS IN THE MANUFACTURING SECTOR BY TYPE OF PROJECTS Malaysia remained an ideal location for new investors with EXPANSION/DIVERSIFICATION 535 new projects recorded, or PROJECTS NEW PROJECTS 54.1% of total projects approved RM45.2 billion (54.7%) RM37.5 billion (45.3%) RM45.2 billion or 54.7% from the RM82.7 453 projects total approved investments, 535 projects were new investments billion 47,000 new jobs 31,606 new jobs FDI continued to dominate both new and expansion/diversification projects DDI RM10.9 bil DDI (28.9%) RM27.2 bil FDI DDI focused on new projects with FDI (60.2%) investments worth of RM18.0 bil (39.8%) RM18.0 billion , 65.1% higher RM26.7 bil (71.1%) than expansion/diversification projects 13 MALAY LAYSI SIA A INVES ESTMEN ENT PERFORMANCE E REPO PORT 2019

APPROVED INVESTMENTS IN THE MANUFACTURING SECTOR BY INDUSTRY RM billion 25.7 Electrical & Electronics 10.8 Paper, Printing & Publishing 8.0 Transport Technology 6.9 Non-Metallic Mineral Products Top 5 Industries contributed 68.0% of total 4.8 Chemicals & Chemical Products approved investments in the manufacturing sector 4.6 Rubber Products FDI and DDI for the following industries 4.5 increased more than 100% from 2018: Machinery & Equipment FDI:  3.8 Food Manufacturing Electrical & Electronics, Machinery & Equipment,  Transport Technology, Food Manufacturing, 3.2 Non-Metallic Mineral Products and Scientific & Petroleum Products (inc. Petrochemicals) Measuring Equipment 2.5 Scientific & Measuring Equipment  DDI: Transport Technology, Electrical & Electronics,  2.5 Plastic Products Non-Metallic Mineral Products, Chemicals & Chemical Products, Plastic Products and Paper, 2.0 Printing & Publishing Fabricated Metal Products Others (wood, basic metal, natural gas, < 1.0 textiles, furniture, miscellaneous) 14 MALAY LAYSI SIA A INVES ESTMEN ENT PERFORMANCE E REPO PORT 2019

APPROVED INVESTMENTS IN THE MANUFACTURING SECTOR 3 catalytic and 2 high growth sub-sectors (3+2) under the 11 th Malaysia Plan Approved investments increased by 90.2% from RM21.5 billion in 2018 to RM billion RM40.9 billion 25.7 Electrical & Electronics 386 approved projects, an increase of 53.8% from RM40.9 billion Chemicals & Chemical 4.8 Products 251projects in 2018 ( 49.5% from total approved investments in manufacturing sector) Capital Investment Per 4.5 Machinery & Equipment Employee (CIPE) increased FDI – RM30.6 billion by 20.0% from 2018 ( 80.0% increase from RM17.0 bil in 2018) 3.9 Medical Devices 13,391 new jobs in DDI – RM10.3 billion ( 128.9% increase from RM4.5 bil in 2018) managerial, technical and supervisory (MTS) roles 2.0 Aerospace 15 MALAY LAYSI SIA A INVES ESTMEN ENT PERFORMANCE E REPO PORT 2019

APPROVED INVESTMENTS IN THE MANUFACTURING SECTOR MAJOR SOURCES OF FDI PRC and USA accounted for 54.7% of total foreign investments PRC was the largest FDI contributor for the last four years 15.3 14.2 (2016-2019) FDI from Taiwan, USA and Singapore increased seven, four and three folds respectively from 2018 RM billion 5.6 5.2 3.8 1.8 1.2 1.0 0.9 0.8 PRC USA Singapore Taiwan Japan UK Hong Kong Netherlands Republic of Germany Korea Note: Excluding Tax Havens 16 MALAY LAYSI SIA A INVES ESTMEN ENT PERFORMANCE E REPO PORT 2019

APPROVED INVESTMENTS IN THE MANUFACTURING SECTOR BY STATES  Selangor recorded the highest approved investments for manufacturing sector  Selangor, Pulau Pinang, Kedah & Johor contributed RM11.5 bil nearly 70% of total approved investments RM53.3 mil RM18.5 mil RM6.5 bil RM638.8 mil RM16.9 bil RM6.6 bil RM4.9 bil RM17.0 bil RM2.6 bil RM3.6 bil RM174.2 mil RM879.3 mil RM11.5 bil 17 MALAY LAYSI SIA A INVES ESTMEN ENT PERFORMANCE E REPO PORT 2019

STATUS OF IMPLEMENTATION OF MANUFACTURING PROJECTS APPROVED (2015-2019) AS AT 31 DEC 2019 120% 2,794 implemented 100% projects with investments worth of RM208.5 billion from the total of 3,809 approved Production 80% 2,593 (68.1%) projects from 2015-2019 with Implemented investments worth of Projects 2,794 (73.4%) RM367.0 billion 60% 73.4% of total projects 40% Machinery approved have been Installation & Site Acquired Factory 103 (2.7%) implemented Construction 201 (5.3%) Active Planning 20% 729 (19.1%) 214,969 jobs have been Not Implemented 183 (4.8%) created 0% 18 MALAY LAYSI SIA A INVES ESTMEN ENT PERFORMANCE E REPO PORT 2019