Malaysia’s approved investments grew 11.7 percent year on year to MYR 218.5 billion ($54.27 billion), underpinned by data center and cloud projects, official data showed on Friday.
The Malaysian Investment Development Authority (MIDA) said in a statement that the approved investments covering 2,746 projects across the services, manufacturing and primary sectors are expected to create 99,030 jobs once fully implemented, 8.4 percent more jobs than the first half of 2025.
Foreign investments accounted for MYR 126.9 billion, or 58.1 percent of total approved investments, an increase of 18.5 percent year-on-year.
Domestic investments contributed MYR 91.6 billion, or 41.9 percent, representing a 3.5 percent year-on-year growth.
Collectively, the figures reflect continued confidence from both international and Malaysian investors, said MIDA.
The United States was the largest foreign source at MYR 33.1 billion, followed by Singapore (MYR 25.9 billion), Japan (MYR 22.3 billion), China (MYR 16.5 billion) and the Cayman Islands (MYR 4.1 billion).
Together these five top sources supplied more than 80 percent of approved foreign investment.
The services sector attracted the largest share of approved investments at MYR 149.6 billion across 1,750 projects, up 21 percent in value.
Information and communications led services growth, with approved investments rising 68.2 percent to MYR 103.3 billion.
Data-center and cloud-computing projects accounted for MYR 95.8 billion, close to 44 percent of all approved investments during the period, as demand for artificial intelligence (AI) computing power continued to grow across the region.
It is noted that Malaysia, ranked by UNCTAD among the world’s ten largest data-center destinations, has set a target of becoming an ‘AI nation’ by 2030.
To manage the pace of expansion, the Data Center Task Force, a strategic platform to streamline investment approvals on data centers, clears only those with secured power and water and demonstrable green compliance, while giving priority to operators that support the local supply chain.
Meanwhile, the manufacturing sector secured MYR 51.3 billion (down 25.1 percent) in approved investments across 973 projects (up 88.2 percent).
Leading manufacturing industries included electrical and electronics (E&E) (MYR 16.6 billion); machinery and equipment (M&E) (MYR 7.5 billion); chemicals and chemical products (MYR 5.5 billion); transport equipment (MYR 4.9 billion).
Machinery and equipment investments which soared 44.8 percent are among the fastest-growing sector.
“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,” said Tengku Zafrul Aziz, Chairman of MIDA.
According to him, services investments grew 21 percent, 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 percent jump in project numbers and the shift of semiconductor investment from back-end assembly towards front-end design and equipment clearly shows the operationalization of the National Semiconductor Strategy, he added.
“Guided by the New Industrial Master Plan 2030, MIDA will continue to prioritize and implement investments that transfer technology, deepen local vendor participation and create high-value jobs for Malaysians,” he said.
MIDA also highlighted that Malaysia’s near-term outlook rests on resilient fundamentals, rising domestic participation and a pipeline concentrated in semiconductors, AI infrastructure, renewable energy and medical devices, even as global conditions remain uncertain.
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