Foreign Direct Investment (FDI) in Malaysia registered higher net inflow of RM48.1 billion in 2021 as compared to RM13.3 billion in the previous year following a gradual recovery in the global economy from the after effects of the COVID-19 pandemic. In terms of position, FDI climbed to RM788.8 billion as at end of 2021 (2020: RM684.9 billion). Meanwhile, investment income rose to RM101.0 billion from RM43.8 billion in 2020, as a result of higher income earned by foreign companies in Malaysia.
FDI flows were primarily in the form of equity and investment fund shares. In the meantime, debt instruments recorded higher net outflows of RM8.1 billion as against net outflows of RM2.6 billion in 2020.
Manufacturing sector were the main contributors for FDI flows, while income was largely in Manufacturing sector, followed by Services.
The largest investment flows were mainly from the USA, Singapore and the United Kingdom. Meanwhile, investors from the USA, Singapore, and the Netherlands gained the highest earnings in 2021.
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