Kuala lumpur: Malaysia has maintained its status as a favored destination for foreign companies, attributed to its strategic position and neutrality in the global geopolitical landscape, along with access to a variety of markets. This has resulted in RM1.14 trillion in approved investments over three years under the MADANI Government.
According to BERNAMA News Agency, Deputy Investment, Trade and Industry Minister Sim Tze Tzin highlighted that the influx of foreign investments has also heightened the confidence of local companies, driving domestic investment growth to account for about 45 percent of total investment. Sim mentioned that no specific key performance indicators (KPIs) have been set for domestic and foreign investment, as they depend on prevailing circumstances. He noted significant interest from foreign companies in Malaysia due to efforts by the Prime Minister to attract global investments.
Sim also emphasized the government's efforts to encourage domestic investment through the New Incentive Framework launched in March 2026, offering various incentives to local companies. The government aims to match local companies with international and multinational corporations, integrating them into supply chains to benefit from foreign investments.
He explained that the symbiotic relationship between foreign and domestic investment results in mutual benefits, as foreign investors' confidence in Malaysia prompts domestic companies to invest. This approach is viewed positively for Malaysia's current economic landscape.
In response to queries on the growth of domestic investment compared to foreign investment over the past five years, Sim stated that the MADANI Government prioritizes a balanced approach to attracting foreign investment while strengthening domestic investment. Both are seen as complementary in stimulating national economic growth.
From 2021 to March 2026, total approved investments across various sectors amounted to RM1.8 trillion, with RM818.5 billion contributed by domestic investment and RM996.4 billion by foreign investment. Sim noted that this development reflects effective government policies supporting local company expansion.
He cited reinvestment commitments by local companies, including QL Foods Sdn Bhd's RM1.3 billion investment creating 3,000 jobs; Institut Jantung Negara Sdn Bhd's RM260 million investment creating 920 jobs; ViTrox Technologies Sdn Bhd's RM250 million investment creating 1,889 jobs; and Ain Medicare Sdn Bhd's RM170.9 million investment creating 82 jobs.
Sim concluded that government policies fostering strategic cooperation between foreign and domestic investors successfully leverage foreign investment as a catalyst to enhance domestic investors' capabilities, driving Malaysia's economic growth.