Inve$t | Market Sentiments | 20 October 2023
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According to the Minister of Investment, Trade, and Industry (MITI) Tengku Datuk Seri Zafrul Abdul Aziz, Malaysia has secured a total of RM230.07 billion in foreign direct investment commitments through a series of Trade and Investment Missions held from January to September 2023. This includes RM23.07 billion in investment commitments from Japan, RM170 billion from China, RM24 billion from the Republic of Korea and RM13 billion from Singapore.
In a written parliamentary reply to Datuk Zulkafperi Bin Hanapi (PN-Tanjung Karang), he noted that out of the total investment commitments of RM230.07 billion, 51.38% or RM118.21 billion is expected to be finalized this year. He added that from January to June 2023, Malaysia managed to secure approved investments totalling RM132.6 billion in the service, manufacturing and primary sectors, involving 2,651 projects. This is expected to create 51,853 job opportunities in the country.
Domestic direct investment (DDI) accounted for 52.2% or RM69.3 billion of the total approved investment driven by investments in the service sector, particularly in real estate and the primary sector. Total FDI contributed 47.8% or RM63.3 billion to approved investments.
Compared with 2022, Malaysia recorded approved investments worth RM267.8 billion in the manufacturing, service and primary sectors, with FDI accounting for 61% or RM163.3 billion of the total investments while DDI represented 39% or RM104.4 billion of the total approved investments.
China is the largest investor with the approval of 91 projects worth RM55.4 billion, followed by the United States (RM29.2 billion), the Netherlands (RM20.4 billion), Singapore (RM13.5 billion) and Japan (RM11.4 billion).
Capital Markets Malaysia launches simplified ESG disclosure guide for SMEs
Capital Markets Malaysia (CMM), an affiliate of the Securities Commission Malaysia, has launched the Simplified ESG Disclosure Guide (SEDG) targeted at SMEs within global supply chains. The guide simplifies ESG-related frameworks and provides guidelines on ESG disclosures to SMEs. It is aligned to global, local and government frameworks and reporting standards, including the Global Reporting Initiative, the International Sustainability Standards Board, the Bursa Malaysia Sustainability Reporting Guide and Malaysian Code on Corporate Governance. Consultations were conducted with stakeholders such as large multinational companies, public-listed companies, SMEs and regulators when formulating the guide.
SC executive chairman and CMM chairman Datuk Seri Dr Awang Adek Hussin said that as we collectively transform and elevate Malaysia’s economic system through the adoption of international standards and best practices, it is important to ensure that no SME is left behind. To support inclusive and extensive adoption, CMM will launch the Bahasa Malaysia and Simplified Mandarin versions of the SEDG by end 2023.
The SEDG comprises 35 priority disclosures that will enable SMEs to respond to disclosure requests from stakeholders. It is categorised into basic, intermediate and advanced levels to cater to different SMEs.
According to CMM general manager Navina Balasingam, the journey of adopting sustainable practices can be daunting for SMEs. As such, CMM’s goal is to empower them with a framework that provides straightforward guidance that is structured and practical for SMEs to navigate the process of tracking and reporting their ESG data. CMM has also launched a SEDG Adopter Programme to support SMEs with in-person training, tutorials and workshops nationwide. The reception to the programme has been overwhelming.
Early adopters of the SEDG include banks, multinational companies, and industry associations such as Dewan Perniagaan Melayu Malaysia, the Associated Chinese Chambers of Commerce and Industry of Malaysia, the Malaysian Associated Indian Chambers of Commerce and Industry, and Small and Medium Enterprises Association. CMM plans to launch specialised sectoral disclosure guidance in early 2024. For more information on the SEDG and to download the Guide, click this link.