Approved FDI in the first half of the year was only RM26.5 billion but this grew significantly higher at RM54 billion in the second half, Lim Guan Eng said.

Lim said the FDI growth was augmented by a 3.2% year-on-year expansion in the Industrial Production Index (IPI) in January this year, higher than the market consensus of 2.3% compiled by Bloomberg.

He said this was consistent with the overall positive numbers that Malaysia was recording and expected the trend to continue in the near future despite external challenges.

In a statement today, Lim said the marked increase in approved FDI highlighted the crucial role Malaysia was playing as a stable regional manufacturing hub, as well as a safe haven for international supply chains amid the continuing trade war between China and the United States.

He said FDI planned by manufacturers from China rose from RM3.9 billion in 2017 to RM19.7 billion in 2018, an increase of 410.8% or RM15.8 billion.

At the same time, approved manufacturing investment from the US grew by 184.9% or RM2.1 billion from RM1.1 billion in 2017 to RM3.2 billion last year.

“But it is not just Chinese and American manufacturers that are widening their footprints in Malaysia.

“Indonesian investors intended to invest RM9 billion in 2018 from a mere RM0.5 million in 2017, which makes Indonesia the second largest source of foreign manufacturing investments after China,” he said.

Lim said the government would continue with its reforms to raise the quality of growth and ensure that the benefits were shared across all segments of society.