KUALA LUMPUR: InvestKL remains confident in its ability to attract RM50bil in committed investments by 2030, anchored by strong investor pipeline, government policies as well as the geographical location of Greater Kuala Lumpur (Greater KL).
Chief executive officer Datuk Muhammad Azmi Zulkifli added that Malaysia’s location within Asean is an opportunity that must be leveraged on and will be among the key factors in achieving the target.
“With a clear strategy and a strong investor pipeline, we are confident in meeting this goal and creating wider economic spillovers that benefit Malaysia as a whole,” he told the media at the InvestKL Performance Update 2024 event here.
The government agency attracted RM4.08bil in foreign investments in 2024, more than half of last year’s achievement of RM8.7bil.
To date, InvestKL has attracted over 150 global companies and contributed to RM33.8bil in cumulative investments since its inception in 2011.
When asked about the decline, Muhammad Azmi said the record-high number recorded in 2023 was due to three significantly large investments, which involved billions of ringgit in investments by companies within the services sector.
“This is very rare because the services sector does not include a large amount of capital expenditure.
“Instead, it goes to operational expenditure and this goes to salaries and services that they use.
“Looking back, the average investment size has increased from RM200mil previously to now ranging between RM250mil and RM300mil per investment.
“The trajectory does seem lower, but we look at the quality and depth of investments,” he said.
Amid the current geopolitical tensions and trade war, which involves two of the largest economies – the United States and China – he said the government is currently assessing the situation.
“At this early stage, we are looking at how we can balance and strike a proper perspective of how we can continue to promote ourselves as a neutral location.
“As seen in the headlines, Malaysia is a country that is always open for business and friendly on trading.
“As the studies are being done at a ministry level and many things are being looked at from a holistic perspective, we are looking at the ‘wait-and-see’ situation to ensure our position property,” he added.
Of the amount secured since 2011, the European, Middle East and Africa region accounted for 40% of the investors, while the United States as well as Asia and Oceania region had both contributed to 30%.
Investment, Trade and Industry Ministry deputy secretary general Datuk Bahria Mohd Tamil highlighted that the key driver for Malaysia’s economic transformation is the modern services sector, which she said continues to shape the future of high-value investments.
She added that the services sector remains a dominant force, accounting for RM252.7bil or 66.8% of total approved investments in 2024.
“As we look forward, the government, through a whole-of-government approach, will continue to strengthen Malaysia’s position as a premier investment destination, ensuring Greater KL remains a hub for innovation, digitalisation and global business expansion.”