KUALA LUMPUR, Feb 19 — The increase in investment in the fourth quarter of 2023 (4Q 2023) is a positive sign for Malaysia’s future economic growth, economist Dr Nungsari Ahmad Radhi said.
He told Bernama that the country saw capital formation increasing which underscores new capacities in the economy.
The Statistics Department (DOSM) 2023’s print on Friday showed that Malaysia’s international investment position registered higher net assets of RM119.4 billion at the end of 4Q 2023 versus RM94.9 billion in 3Q 2023.
Meanwhile, direct investment abroad amounted to RM662.8 billion with 69.4 per cent, or RM459.9 billion, in the services industry, 12.1 per cent (RM80.5 billion) in the mining and quarrying, and 9.0 per cent (RM59.9 billion) in the manufacturing sector.
The top three destinations were Singapore valued at RM150 billion, followed by Indonesia at RM70.6 billion and the Netherlands at RM40.5 billion.
DOSM said Malaysia’s foreign direct investments (FDI) rose by RM11.4 billion to RM926.3 billion at the end of 4Q, with 50.6 per cent, or RM468.4 billion, in the services sector, followed by manufacturing (42.2 per cent: RM390.8 billion) and mining and quarrying (4.5 per cent: RM42.1 billion).
The top three countries for FDIs were Singapore (RM 207.7 billion), Hong Kong (RM113.3 billion), the United States (RM97.4 billion).
“We need more of these both domestically, and via FDI. The economy needs to be structurally different as it gains competitiveness in new areas,” Nungsari said.
“Growing what we are already doing will not do. We have to invest in new capacities in new things. We need to have more of this,” he noted.
— Bernama
