Malaysia Secures RM92.8 Billion in Approved Investments for 1Q 2026

Robust Economic Momentum in the First Quarter

Malaysia has demonstrated continued economic resilience by securing RM92.8 billion in approved investments for the first quarter of 2026. These figures, released by the Malaysian Investment Development Authority, span 1,249 projects across the services, manufacturing, and primary sectors.

Although the total value saw a marginal decline of 0.2 percent compared to the RM93.0 billion recorded in the first quarter of 2025, the quality of these approvals marks a massive win for the local labor market. The approved projects are projected to generate 50,226 new jobs, representing a significant 46.7 percent increase in employment opportunities compared to the same period last year.

Foreign and Domestic Investment Breakdown

The total approved sum is split firmly between foreign direct investment (FDI) and domestic direct investment (DDI), showcasing balanced participation in national growth.

• Foreign investments accounted for the larger share, contributing RM56.2 billion or 60.5 percent of the total approved investments.
• Domestic investments displayed robust momentum, growing 13.0 percent year-on-year to reach RM36.6 billion, making up 39.5 percent of total approvals and reflecting strong local business confidence.

Japan emerged as the largest foreign investor for the quarter, pumping in a staggering RM21.5 billion—a massive leap from the RM1.6 billion recorded in 1Q 2025. Trailing behind Japan are the People's Republic of China and the United States, each recording RM10.1 billion, followed by Singapore at RM6.7 billion and Thailand at RM2.5 billion.

Services and Digital Infrastructure Take the Lead

The services sector remains the undisputed engine of Malaysia's investment landscape, contributing RM60.8 billion or 65.5 percent of the total approved value.

Within this sector, the information and communications subsector dominated with RM38.9 billion. This surge was primarily fueled by global demand for artificial intelligence and cloud computing. Data centres and cloud computing projects alone accounted for RM34.6 billion across 33 projects, cementing Malaysia's status as a regional digital hub.

Meanwhile, the manufacturing sector brought in RM24.1 billion across 501 projects. Key industries driving this manufacturing inflow include electrical and electronics (E&E), chemicals, machinery and equipment, and food manufacturing. The primary sector also saw an impressive jump to RM7.9 billion, driven almost entirely by oil and gas exploration off the coast of Sarawak.

Selangor Dominates State Investment Rankings

On a geographical level, certain states pulled far ahead in securing high-value projects, benefiting heavily from digital infrastructure expansion.

• Selangor: RM33.5 billion (leading the nation via massive data center approvals).
• Johor: RM16.9 billion.
• Kuala Lumpur: RM16.9 billion.
• Penang: RM6.2 billion.
• Sarawak: RM4.0 billion.

These top-performing regions highlight the success of targeted state-level policies aimed at attracting high-tech industries and advanced manufacturing facilities.

Looking Ahead: Sustained Investor Confidence

The government remains optimistic about the pipeline for the rest of the year. MIDA is currently facilitating 182 potential projects worth RM38.3 billion. Furthermore, authorities are in active discussions for an additional RM91.0 billion worth of prospective investments. These ongoing negotiations indicate sustained long-term investor confidence in Malaysia's economic fundamentals and pro-business policies.

Key Facts

• Total Approved Investments: RM92.8 billion across 1,249 projects for 1Q 2026.
• Top Foreign Investor: Japan with RM21.5 billion.
• Top State Recipient: Selangor with RM33.5 billion.
• Projected Job Creation: 50,226 new jobs (a 46.7% increase year-on-year).

What People Are Asking

Question: Which sector contributed the most to Malaysia's 1Q 2026 investments?

Answer: The services sector was the largest contributor, accounting for RM60.8 billion or 65.5 percent of total approved investments, driven heavily by information and communications technology and data centers.

Question: How much did domestic investments grow in the first quarter of 2026?

Answer: Domestic investments grew by 13.0 percent year-on-year to reach RM36.6 billion, demonstrating rising confidence among local businesses.