KUALA LUMPUR, June 23 (Bernama) -- Malaysia's proactive measures and favourable investment policies have strategically positioned it well in the global foreign direct investment (FDI) landscape, according to the United Nations Trade and Development (UNCTAD) World Investment Report 2024.
The report, released on June 20, highlighted a slew of strategic initiatives mulled by Malaysia ranging from assistance in obtaining specific permits to comprehensive support for foreign investors.
Among others, Malaysia adopted a dedicated visa facilitation service for strategic investors identified by the Malaysian Investment Development Authority (MIDA).
The nation is also implementing fast-track “green” lanes and simplified processes to ease investment, it said.
According to UNCTAD, ASEAN member countries have also developed investment portals and digital platforms for e-payment and acceptance of electronic documents and certificates, further enhancing the investment landscape.
“The ASEAN region has long been proactive in adopting strategies and policy measures to support investment. These efforts have intensified in recent years, accelerating during the pandemic, with an increase from six new investment facilitation measures in 2019 to 28 in 2020.
“These included the introduction of online facilities, e-application systems and streamlined administrative processes, reflecting a strong regional commitment to digitalising and simplifying investment procedures,” it said.
The report also shows that Malaysia's attractiveness is further bolstered by its steady expansion in sustainable development initiatives.
The World Investment Report 2024 said the rapid expansion in the sustainable finance market has brought about the parallel growth of national sustainable finance measures in the Group of 20 and the largest developing economies, including Malaysia.
In 2023, these economies introduced a total of 94 sustainable finance policies and regulations.
The report said that in total, FDI inflows to Southeast Asia remained stable, with an increase in merger and acquisition sales.
The number of greenfield announcements surged by 42 per cent, adding US$62 billion (US$1=RM4.71) more in value.
However, it said this gain was countered by a US$64 billion fall in the value of international project finance deals.
More broadly, while foreign investment flows to developing Asia receded in 2023, they remained high at US$621 billion.
The continent, led by East and Southeast Asia, continued to be the world’s largest recipient of FDI, accounting for nearly half of global inflows, UNCTAD said.
In Malaysia, notable projects included a US$10 billion expansion of Malaysian automaker Proton, which partly owned Geely.
In 2023, global FDI decreased by two per cent to US$1.3 trillion.
MIDA reported that in the first quarter of 2024, Malaysia attracted RM83.7 billion of approved investments, comprising RM43 billion (or 51.3 per cent) in manufacturing, RM39.3 billion (47 per cent) in services and RM1.4 billion (1.7 per cent) in the primary sector.
This marked a 13 per cent jump in overall approved investments from the same period last year.
-- BERNAMA
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