Sarawak draws RM4 bil in approved investments for Q1 2026, fifth highest in M’sia

A file photo of an aerial view of Sarawak Legislative Assembly (DUN) Complex.
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By DayakDaily Team

KUCHING, June 8: Malaysia has recorded RM92.8 billion in approved investments for the first quarter of 2026, in which Sarawak recorded RM4 billion.

In a media release from the Malaysian Investment Development Authority (Mida), foreign investments accounted for 60.5 per cent or RM56.2 billion of total approved investments, while domestic investments (DI) grew 13.0 per cent y-o-y to RM36.6 billion, representing 39.5 per cent of total approvals, reflecting growing confidence among Malaysian businesses.

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Sarawak was among the top five states that recorded the highest approved investments nationwide, placing fifth behind Selangor (RM33.5 billion), Johor (RM16.9 billion), Kuala Lumpur (RM16.9 billion), and Penang (RM6.2 billion).

This year’s numbers also saw a marginal 0.2 per cent decline compared to RM93 billion in Q1 2025.

The investments comprise 1,249 projects across the services, manufacturing, and primary sectors. The services sector remained the largest contributor, accounting for RM60.8 billion or 65.5 per cent of total approved investments, involving 731 projects.

Second is the manufacturing sector, which secured RM24.1 billion (26 per cent) in approved investments across 501 projects.

The primary sector recorded RM7.9 billion (8.5 per cent) in approved investments with 17 projects, driven by oil and gas exploration and development activities, particularly in Sarawak.

Focusing on Sarawak, the State recorded the highest approved investments from the primary sector with RM3.2 billion, followed by manufacturing (RM500 million) and services (RM300 million).

Among foreign investors, Japan emerged as the largest source of approved investments with RM21.5 billion, followed by the People’s Republic of China (RM10.1 billion), the United States (RM10.1 billion), Singapore (RM6.7 billion), and Thailand (RM2.5 billion).

According to Mida chairman Tengku Datuk Seri Utama Zafrul Tengku Abdul Aziz, the Q1 2026 performance reflected Malaysia’s growing ability to attract investments that are more resilient, technology-driven, and value-creating for the economy.

“Malaysia’s Q1 2026 investment performance sends a clear signal—our economic fundamentals are strong. Both global and domestic investors continue to place confidence in this nation.

“With GDP growing at 5.4 per cent and Moody’s projecting Malaysia as the fastest growing A-rated economy over the next two years, we are proving that Malaysia is not just participating in regional value chains. We are emerging as a strategic hub for the industries that will define ASEAN and Asia’s next decade. At Mida, our focus is to turn this momentum into real value for Malaysians.

“Through #InvestLokal and the New Incentive Framework for the Manufacturing Sector introduced on March 1, 2026, we are prioritising quality, tech-driven investments that strengthen local industry participation and create high-value jobs. Malaysia is firmly positioning itself at the centre of global value chains—as a resilient, future-ready investment hub for the world,” he said.

Meanwhile, Mida chief executive officer (CEO), Datuk Sikh Shamsul Ibrahim Sikh Abdul Majid, said Malaysia’s investment performance in Q1 2026 reflects the country’s strong facilitation and project execution capabilities.

“Despite continued global headwinds, Malaysia remains firmly on investors’ radar, supported by clear policies, strong economic fundamentals, and our ability to move projects from approval to operationalisation.

“The Asia Manufacturing Index 2026 ranks Malaysia second in Asia after China. This is our highest position in the index to date, and it is matched by results on the ground: of the manufacturing projects approved since 2021, over 85 per cent had reached various stages of implementation as of February 2026.

“At Mida, we remain focused on supporting investors throughout their implementation journey. Through facilitation platforms such as IMFC and close collaboration with relevant ministries and agencies, we continue working to strengthen coordination and accelerate project execution. This remains an important pillar in reinforcing Malaysia’s investment competitiveness,” he said. — DayakDaily

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