KUALA LUMPUR: Foreign direct investment (FDI) in Selangor is likely be halved this year to RM8.5 billion from RM17 billion achieved last year, owing to the weaker sentiment globally brought by the Covid-19 pandemic.
Selangor executive councillor Datuk Teng Chang Khim said the approved investments in Selangor stood at RM3.3 billion as at June 30 this year.
Teng, who is also chairman of standing committees for investment, industry and commerce and small and medium enterprise, said the revised target was in line with global sentiment due to Covid-19 pandemic as most countries would witness the same trend.
Previously, Selangor set an FDI target of RM12 billion in five main sectors including electrical and electronics (E&E), food and beverages (F&B) and machinery.
"However, we have about RM5 billion pending investments that will be approved by Malaysian Investment Development Authority towards the year end," he said at a virtual press conference after officiating the Selangor International Business Summit 2020.
Teng said the state government would be satisfied with the FDI of RM8.5 billion this year, amid the ongoing pandemic and lockdown for the past few months.
"With the previous three months of movement control order (MCO) in place and now the conditional MCO for the whole of Selangor, we do not know what lies beyond us for now. We have not set our investments target for 2021," he said.
Selangor recorded the highest FDI of RM18.9 billion in 2018.
On the reinstatement of CMCO in Kuala Lumpur, Selangor and Putrajaya from October 14 and October 27, he said Malaysia's gross domestic product might shrink to -4.4 per cent this year.
"CMCO will certainly have some impacts. In terms of economic activities, it has affected our business and this was unavoidable but we have to think for a long-term.
"Fortunately, this CMCO restricts more on activities rather than movement. All businesses and economic activities are still allowed. I hope this will minimise the impact on the economic development."
Teng said Selangor will emphasise more on the E&E, transport equipment, F&B, life sciences and machinery and equipment segments this year.
Selangor expects to organise the International Aviation Show next year to promote the aerospace sector in the state.
"Eighty per cent of aircraft still grounded and adversely affected the aerospace sector. But we believe, the sector to pick up when all international borders are open.