KUALA LUMPUR, June 18 (Xinhua) -- Malaysia's foreign direct investment (FDI) last year fell 54.8 percent year on year to 14.6 billion ringgit (about 3.53 billion U.S. dollars) amid COVID-19 pandemic, the lowest since 2009, official data showed Friday.
The Department of Statistics Malaysia (DOSM) said in a statement that the economic activities were severely disrupted globally throughout the year 2020 in the wake of the COVID-19 pandemic that in turn affected the global investment performance.
According to DOSM, the services sector which contracted 60.5 percent year-on-year to 6.9 billion ringgit has led to the largest decline in FDI.
However, the downturn in services was not an unpropitious sign since this sector remained as the major contributor to FDI flows, attracting 47 percent of total investment, particularly in financial activities.
Meanwhile, manufacturing was the second-highest contributor which received higher equity precisely in electrical and electronics products, followed by the mining sector in the form of debt instruments.
Despite registering lower FDI flows in the year 2020, the accumulated FDI in Malaysia has increased by 11 billion ringgit to 698.8 billion ringgit.
According to the department, first quarter FDI inflow in Malaysia showed a recovery by registering 9.1 billion ringgit, the highest investment since the COVID-19 pandemic hit Malaysia.
The improved investment was contributed by higher inflow in equity and investment fund shares, precisely in manufacturing and services sectors. Enditem