10pct rise in approved investments could lift private investment by 5.2pct
KUALA LUMPUR: A 10 per cent increase in Malaysia's approved investments is estimated to boost actual private investment by 5.2 per cent within six to 18 months, according to the Finance Ministry's Economic Outlook 2027 report.
KUALA LUMPUR — According to the Finance Ministry's Economic Outlook 2027 report, a 10 percent increase in Malaysia's approved investments is projected to lead to a 5.2 percent rise in actual private investment within six to 18 months. The report further indicates that a 10 percent surge in real private investment is linked to an immediate 0.49 percent expansion in real Gross Domestic Product (GDP).
The report emphasizes the significance of converting approved investments into tangible projects, highlighting that the gap between approved and realized investments poses a structural risk to economic growth. The Ministry notes that not all approved projects materialize into actual private investment, underscoring the need for improved monitoring and more effective implementation.
In 2025, Malaysia recorded RM431.1 billion in approved investments, with RM222.4 billion (51.6 percent) from domestic sources and RM208.7 billion (48.4 percent) from foreign investments. The relatively balanced mix was cited as reducing exposure to external shocks, with domestic investment acting as a buffer against fluctuations in foreign investment.
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