By DayakDaily Team
KUCHING, Aug 28: Sarawak is among the five top investment destinations in Malaysia in the first half (1H) of 2026, from January to June, with a total of recorded approved projects worth RM10.8 billion, mainly from offshore oil and gas exploration projects.
In a statement, the Malaysia Investment Development Authority (MIDA) said that Selangor led with RM70 billion across 835 projects, with its services sector attracting digital investments in areas such as artificial intelligence (AI), big data analytics, cybersecurity, FinTech, cloud computing, and Internet of Things (IoT).
Johor followed with RM59.4 billion, supported by the JS-SEZ and upcoming RTS Link connectivity; Kuala Lumpur recorded RM26.6 billion, including residential and serviced apartment developments linked to urban growth, transit-oriented development (TOD), and demand for more accessible housing; and Penang secured RM20.2 billion, led by advanced manufacturing and semiconductors.
Overall, approved investments in Malaysia reached RM218.5 billion, covering 2,746 projects across the services, manufacturing, and primary sectors, up 11.7 per cent from the RM195.5 billion recorded in the same period in 2025.
These approved projects are expected to create 99,030 jobs once fully implemented, 8.4 per cent more jobs than the first half of 2025.
Meanwhile, foreign investments (FI) accounted for RM126.9 billion, or 58.1 per cent of total approved investments, up 18.5 per cent year-on-year (y-o-y). Domestic investments (DI) contributed RM91.6 billion, or 41.9 per cent, up 3.5 per cent y-o-y.
The United States was the largest foreign source at RM33.1 billion, followed by Singapore (RM25.9 billion), Japan (RM22.3 billion), the People’s Republic of China (RM16.5 billion), and the Cayman Islands (RM4.1 billion). Together, these five top sources supplied more than 80 per cent of approved FI.
Among the three sectors—services, manufacturing, and primary—services recorded the highest total approved investments at RM149.6 billion, the manufacturing sector secured RM51.3 billion, while the primary sector recorded RM17.6 billion.
“The half-year performance is powered by our two largest economic engines—services and manufacturing sectors—and both showcase quality, not just scale of investments. Services grew 21 per cent, led by digital and information-technology investment that is building the backbone for our AI Nation 2030 ambitions while creating opportunities across the wider economy.
“In manufacturing, an 88.2 per cent jump in project numbers and the shift of semiconductor investment from back-end assembly towards front-end design and equipment clearly shows the operationalisation of the National Semiconductor Strategy.
“Investor confidence has also been reinforced by structural reforms that lifted Malaysia’s standing in the IMD World Competitiveness Ranking for 2026, 15th place out of 70 economies, Malaysia’s best placing in over a decade.
“Guided by the New Industrial Master Plan 2030, MIDA will continue to prioritise and implement investments that transfer technology, deepen local vendor participation and create high-value jobs for Malaysians,” said MIDA chairman, Tengku Datuk Seri Utama Zafrul Tengku Abdul Aziz.
As of Aug 10, 2026, MIDA was reviewing 227 proposals worth RM72.1 billion, 128 services projects worth RM36.5 billion, and 99 manufacturing projects worth RM35.6 billion, with a further RM58.4 billion in high-potential leads under discussion.
“Securing the commitment is only half the task; the other half is turning it into operating plants and jobs on the ground, and that is where MIDA’s facilitation work matters most.
“Through the Invest Malaysia Facilitation Centre (IMFC) and close coordination across ministries and agencies, we help investors clear regulatory and implementation hurdles quickly, which is reflected in the 86.3 per cent of manufacturing projects approved since 2021 that have already moved into implementation.
“Our engagement does not end at approvals—we stay involved to handhold projects and, through #InvestLokal, deepen the participation of SMEs and local vendors, so that each ringgit committed becomes real capacity and skilled employment for Malaysians,” said Datuk Sikh Shamsul Ibrahim Sikh Abdul Majid, chief executive officer of MIDA. — DayakDaily
