KUALA LUMPUR, June 17 (Xinhua) -- Foreign investment into Malaysia recorded net inflows of 48.1 billion ringgit (about 10.93 billion U.S. dollars) in 2021, the highest since 2016, signaling the robust recovery ahead, official data showed Friday.

Economic activities were gradually recovering from the after-effect of the COVID-19 pandemic, and the FDI inflow in Malaysia last year has improved from 13.3 billion ringgit in the previous year to 48.1 billion ringgit, the Department of Statistics Malaysia (DOSM) said in a statement.

According to DOSM, the manufacturing sector expanded by 22.5 billion ringgit to record net inflows of 29.5 billion ringgit in 2021 which contributed to the largest flows in FDI.

The manufacturing sector attracted 61.4 percent of total investment in 2021, particularly in electrical, transport equipment, and other manufacturing subsectors.

Meanwhile, the services sector was the second-highest contributor mainly in financial activities, followed by the mining sector.

DOSM data also showed that Asia continued to be the top source of FDI in Malaysia for 2021 with net inflows of 22.5 billion ringgit, mostly received from Singapore, Japan and South Korea which amounted to 17 billion ringgit.

The Asia region also has been the predominant source of FDI position with a value of 413.1 billion ringgit, followed by Europe at 207.7 billion ringgit and the United States at 153 billion ringgit by the end of 2021.

As of the end of 2021, Malaysia's FDI position has increased by 103.9 billion ringgit to 788.8 billion ringgit.

The services sector remained the largest recipient at 49.2 percent or 388.4 billion ringgit, driven by financial and wholesale activities.

This was followed by the manufacturing sector which accounted for 42.2 percent of total FDI, particularly in electrical, transport equipment, and other manufacturing subsectors. (1 U.S. dollar equals 4.4 ringgit) Enditem

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