Manufacturing investments to beat target [New Straits Time (Malaysia)]
(New Straits Time (Malaysia) Via Acquire Media NewsEdge) KUALALUMPUR: Investments in Malaysia's manufacturing sector will likely surpass the RM55 billion target this year, said International Trade and Industry Minister Datuk Seri Mustapa Mohamed.
The investments have so far jumped 100 per cent in the first five months to RM41.7 billion.
The Malaysian Investment Development Authority expects another RM10 billion before year-end.
"Amid the challenging economic environment, Malaysia's investment climate is expected to remain positive this year," he told the media, here, yesterday.
Mustapa said slightly more than 60 per cent of the investments in the first five months were for new projects.
Foreign investments in approved manufacturing projects amounted to RM25.2 billion, accounting for 60.3 per cent of total approved investments, and were led by Japan, China and Germany.
Domestic investments rose twofold to RM16.5 billion, compared with the same period last year.
There were eight projects with investments of more than RM1 billion each.
These included investments from Petronas and Japan's Itochu in Refinery and Petrochemical Integrated Development projects in Johor, Alliance Steel in the Malaysia-China Kuantan Industrial Park, Ibiden Electronics in Penang and Sakura Ferroalloys in Sarawak.
"These investments will have substantial multiplier effects on the economy," said Mustapa.
In terms of value, Johor registered the highest level of capital investments with RM14.9 billion, followed by Sarawak and Pahang.
Existing manufacturing companies have also continued to reinvest, expand and diversify into higher value-added products and activities.
"This is reflected in the approval of 153 expansion or diversification projects with investments of RM16.5 billion," he added.
Chemical and chemical products, basic metal products, petroleum products (including petrochemicals), electrical and electronics, food manufacturing and transport equipment contributed 87.8 per cent to the total approved investments.
Mustapa said domestic investments abroad have risen due to the limited market space in the country.
Manufacturing projects approved for the first five months are expected to create about 39,600 jobs, of which more than 85 per cent are high-skilled jobs in the electrical and electronics sector, chemical and chemical products and basic metal products.
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