KUALA LUMPUR, June 25 (Xinhua) -- Foreign direct investment (FDI) into Malaysia recorded net inflows of 65.9 billion ringgit (15.92 billion U.S. dollars) in 2025, up 41.2 percent from 46.7 billion ringgit in the previous year, official data showed on Wednesday.
The increase was driven by stronger equity injections from foreign investors as well as higher inflows into debt instruments, the Department of Statistics Malaysia (DOSM) said in a statement.
Reflecting sustained investor confidence in the country's economic prospects, Malaysia's cumulative FDI position expanded to 1.09 trillion ringgit at the end of 2025, equivalent to 53.7 percent of gross domestic product (GDP), compared with 51.4 percent a year earlier.
Meanwhile, Malaysia's direct investment abroad (DIA) recorded net outflows of 12.4 billion ringgit in 2025, significantly lower than the 35.5 billion ringgit recorded in 2024.
As a result, the country's total DIA position stood at 589.3 billion ringgit at end-2025, representing 29.1 percent of GDP, down from 32.2 percent in the previous year.
The investments continued to generate substantial returns, with foreign-owned companies operating in Malaysia recording income of 98.2 billion ringgit during the year, while Malaysian companies' overseas investments generated earnings of 39.9 billion ringgit.
By sector, the services industry remained the largest recipient of FDI, attracting net inflows of 59.5 billion ringgit in 2025.
Within the sector, the information and communication subsector accounted for 53.6 percent of total services inflows, underscoring growing investor interest in digital infrastructure and data center-related activities amid accelerating global digitalization trends.
Regionally, Asia remained the largest source of FDI inflows, contributing 73.2 billion ringgit during the year. The region also accounted for the largest share of Malaysia's overall FDI position, with cumulative investments amounting to 679.2 billion ringgit as at end-2025.
On the outward investment front, net DIA outflows were primarily driven by the services sector, which recorded 15.6 billion ringgit in investments abroad, mainly in financial activities and transportation.
Africa emerged as the largest destination for Malaysian direct investment flows in 2025, receiving 7 billion ringgit, largely channeled into the oil and gas industry.
Asia, meanwhile, generated the highest income from Malaysian overseas investments at 22.8 billion ringgit and remained the largest destination by investment position, with total holdings of 339 billion ringgit at the end of 2025. (1 ringgit equals 0.24 U.S. dollars) Enditem
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