KUALA LUMPUR: The government remains bullish about achieving its targeted five per cent increase in investments this year, bolstered by consistent growth in its trade performance.
Investment, Trade and Industry Minister Tengku Datuk Seri Zafrul Abdul Aziz expressed confidence as Malaysia recorded its highest-ever trade value at RM1.4 trillion in the first half of 2024.
He said the surge was underpinned by strong trade dynamics, with exports climbing 3.9 per cent to RM731.11 billion and imports rising 13.8 per cent to RM664.99 billion in June alone.
"The ministry, through the Malaysian Investment Development Authority, has targeted a five per cent increase in approved investments this year, exceeding RM329.5 billion last year.
"We have actually surpassed this investment target in the first quarter. If necessary, we will review and continue to monitor this," he said at a briefing on the country's second quarter trade performance here today.
Malaysia achieved a historic investment performance in 2023, with RM329.5 billion of approved investments across various economic sectors.
Tengku Zafrul said despite the ringgit's current depreciation versus the US dollar, the country's many other major fundamentals remain attractive and appealing to global investors.
He said investors would usually take between six months and up to two years to decide on their investments as well as setting up their factory in the respective country. Therefore, they would not look at currency fluctuations too much.
"While currency volatility may influence decisions, many investors focus on broader economic factors and the potential for export-driven benefits. Our consistent trade surplus, supported by increased exports, remains a stabilising factor," he said.
Malaysia's trade recorded an 8.7 per cent year-on-year (YoY) expansion in June to RM237.81 billion, growing consistently since January 2024.
Tengku Zafrul said exports registered the third consecutive month of growth, increasing 1.7 per cent to RM126.05 billion, while imports rose 17.8 per cent to RM111.76 billion.
He said trade surplus amounted to RM14.29 billion, the 50th consecutive month of surplus registered since May 2020.
"Export growth was contributed mainly by higher demand for machinery, equipment and parts, liquefied natural gas as well as palm oil-based manufactured products," he added.