Malaysia's FDI net inflow drops to 380 mln USD in Q2

Foreign direct investment (FDI) into Malaysia dropped to 1.6 billion ringgit (380 million U.S. dollars) in the second quarter, official data showed Friday, Xinhua reports. 

Malaysia's FDI net inflow drops to 380 mln USD in Q2
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The Department of Statistics Malaysia (DOSM) said in a statement that FDI was underpinned by sustained equity injections and inflows in debt instruments, partially offset by higher income repatriation to parent companies abroad.

Most of FDI inflows were channeled into the services sector, particularly within the financial activities and information and communication subsectors, notably related to data center activities.

The major investors of FDI were from Singapore, Japan and Britain.

Meanwhile, Malaysia's direct investment abroad (DIA) net inflow during the quarter also fell to 600 million ringgit from 3.5 billion ringgit in the previous quarter.

The inflows were driven by equity liquidations and debt instruments, mainly in the manufacturing and services sectors, with the majority concentrated in the information and communication subsector.

Indonesia, Saudi Arabia and Singapore were main contributors to DIA inflows during the quarter.

As of the end of the second quarter of 2025, Malaysia's international investment position (IIP) posted a higher net asset of 63.1 billion ringgit.

Cumulative investments for FDI and DIA were 1.002 trillion ringgit and 622.5 billion ringgit, respectively. (1 ringgit equals 0.24 U.S. dollars)

As reported earlier, Malaysia attracts more than US$20 billion of investment from BRICS countries. 

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