KUALA LUMPUR: Malaysia has recorded its highest-ever level of approved investments totalling RM575bil over the past 18 months, says Datuk Seri Amir Hamzah Azizan.
The Economy Minister said the figure reflects growing investor confidence, with conversion from committed to approved rising from about 70% in 2022 to around 85%.
“This means that what we have attracted is being realised on the ground,” he told the Dewan Rakyat on Monday (Nov 10).
He spoke during the winding up of the Economy Ministry’s Budget 2026 allocation at the committee stage.
Amir Hamzah said the impact of these approvals can already be seen in economic performance.
“If we look at GDP data, the construction sector has recorded double digit growth this year,” he said.
Amir Hamzah added that growth was between 10% and 16% across the first three quarters, and said earlier approved investments have translated into factory construction and development activity.
He said that the government remains confident and optimistic about growth, supported by strong investment flows.
Under the 2026 Development Estimates, a total of RM83bil is allocated.
He said the focus is on core development expenditure which rises to RM57.6bil from RM55.7bil in 2025 and added that newly-approved basic development projects are expected to increase from 1,967 in 2025 to 2,371 next year.
According to Budget 2026, the Economy Ministry’s development allocation stands at RM2.12bil.
He said this is a 72.7% or RM890.56mil increase compared with the revised 2025 allocation and added this rise is due to several projects being completed this year.
Amir Hamzah added these projects are no longer included in next year’s allocation and said that Malaysia’s GDP is expected to grow by 5.2% in the third quarter of 2025.
He said this brings the nine month average to around 4.7%.
“With rising investment and steady growth, the government remains optimistic,” said Amir Hamzah.
He then said that the GDP is projected to expand between 4% and 4.8% in 2025, and between 4% and 4.5% in 2026.
Amir Hamzah added 2026 growth will be driven by domestic demand, a stable labour market and moderate inflation.
Datuk Awang Solahuddin Hashim (Perikatan Nasional–Pendang) asked about differences between MoUs and MoAs.
He asked whether announced investment figures included companies like Tesla that withdrew.
Amir Hamzah said the government will table a Climate Change Bill next year.
He said it will establish a baseline for monitoring carbon emissions and will also create opportunities to reduce industrial carbon footprints.
“Carbon capture, utilisation and storage will be an important part of our industrial strategy,” he said.
“It will help trap and store carbon and create new opportunities in the green economy,” added Amir Hamzah.
Under Budget 2026, the government plans a carbon tax targeting high emission industries.
He said it will start with iron, steel and energy sectors.
Amir Hamzah said Malaysia is committed to developing the CCUS industry.
He said this will support green and low carbon growth in hard to abate sectors.
“CCUS can generate high skilled jobs and accelerate regional development,” he said.
Amir Hamzah said it can position Malaysia as a regional leader in this emerging industry, adding small businesses affected by the carbon tax will receive support.
He said a green transition fund will be managed by the Finance Ministry.
On Iskandar Malaysia, Amir Hamzah said RM73.6mil has been allocated for five projects.
He said these include youth facilities in Johor Baru and Iskandar Puteri and a talent ecosystem study.
Amir Hamzah added this includes the Iskandar Malaysia Analytics Centre and road upgrades to Ladang Air Manis.
He said improvements to the Eastern Dispersal Link interchange are included.