Malaysia Q1 FDI Retreats from Recod High
2026-05-15 04:11
By
Farida Husna
1 min. read
Malaysia’s foreign direct investment (FDI) inflows eased to MYR 22.81 billion in Q1 2026 from a record MYR 26.64 billion in Q4, though inflows remained relatively solid amid ongoing external uncertainty.
The decline mainly reflected softer capital inflows through debt instruments, particularly loans received from abroad, although this component continued to account for the largest share of total FDI.
Equity and investment fund shares also contributed to inflows.
By sector, the services industry attracted the bulk of foreign investments, led by the information and communication subsector, as demand for digital infrastructure and technology-related activities stayed firm.
Mining and quarrying, alongside construction, were the next largest recipients of foreign capital.
In terms of source economies, Singapore remained the leading investor, followed by China and Hong Kong, highlighting continued regional interest in Malaysia’s growth prospects and strategic position in Southeast Asia.