INVESTKL SECURES RM4.08 BLN FDI IN 2024, EYES CUMULATIVE RM50 BLN TARGET BY 2030 - CEO

KUALA LUMPUR, March 13 (Bernama) — InvestKL Corporation secured RM4.08 billion in foreign direct investments in 2024 from 12 leading global companies, said its chief executive officer Datuk Muhammad Azmi Zulkifli.

The RM4.08 billion investments are set to create 4,394 executive jobs, complementing Malaysia’s ambition for a knowledge-driven and innovation-led economy.

Since 2011, InvestKL has attracted over 150 global companies, contributing a cumulative RM33.8 billion in investments and generating 31,849 executive job opportunities.

When asked about the decline in 2024 compared to 2023 performance, Muhammad Azmi explained that InvestKL attracted a record-breaking RM8.7 billion in FDI in 2023, largely driven by three very large investments.

“When we talk about very large investments in the services sector, it's rare to see amounts over a billion. Why? It's because the services sector does not include too much capital expenditure but (spends) from an operational expenditure perspective. So, when a service-related investment exceeds one billion ringgit, that money primarily goes into salaries and services such as rental, legal, logistics and the supply chain. That's (what) happened in 2023,” he told the media at the InvestKL Performances Update 2024 here today.

However, in 2024, Malaysia saw a significant investment when a Japanese company relocated to the country.

“That's a significant one. When we look at the average per investment, it has increased.  Previously, the average per investment was about RM200 million, but now it is between RM250 and RM350 million. The trajectory from a total standpoint may look lower, however, we look also at the quality as well as the depth of complexity of the activities,” he added. 

Muhammad Azmi said InvestKL has also raised its total investment target to RM50 billion by 2030 from the initial target of RM35 billion upon discussion with the Ministry of Investment, Trade and Industry (MITI).

“If we look at the trend for the first 10 years of our operations, investments hovered at about RM2 billion a year; however, from 2020, we saw that a corner has turned, where investments have gone north of RM2 billion. Today, we are doing an average of RM3.5 billion to RM4 billion a year in investments,” he said.

He said there are several perspectives to consider in achieving the RM50 billion target, including technology, the trade tariff war, and the opportunities within ASEAN.

“The recent announcement by Prime Minister Datuk Seri Anwar Ibrahim on the collaboration with Arm Holdings Plc is very specific and niche to drive a very particular ‘vertical.’ When the country is focused on promoting the highest level of technology, the other industries will follow suit -meaning the (development of) other technologies will be easier because the ones that are being pushed to the front are very difficult, and the trickle effect would be visible in that sense,” he added. 

InvestKL remains confident that ASEAN will serve as a neutral hub amid the current geopolitical tensions, and that Greater Kuala Lumpur is the ideal place to be invested in. “Certainly, Greater KL has a momentum going, and with the support of the whole ecosystem, we are confident of or even exceeding the target,” he added.

Also present at the event was MITI Deputy Secretary General Datuk Bahria Mohd Tamil. 

“Malaysia continues to strengthen its position as a key player in the global economy. In 2024, our country achieved a record high of RM378.5 billion in approved investments, underscoring strong investors' confidence in our economic resilience and long-term potential. 

“Greater Kuala Lumpur has been at the forefront of this success, leading the chart with RM192.6 billion in approved investments,” she said. 

Bahria said the milestone reaffirms Malaysia's position as a top destination for high-value investments powered by world-class infrastructure, skilled talent and a progressive business environment.

— BERNAMA