FX.co ★ Malaysia Q1 FDI Retreats from Recod High

Malaysia’s foreign direct investment (FDI) inflows moderated to MYR 22.81 billion in Q1 2026, down from a record MYR 26.64 billion in the previous quarter, but remained relatively resilient amid persistent global uncertainty. The decline was largely driven by weaker capital inflows via debt instruments, particularly external loans, although this category still represented the largest share of total FDI. Equity placements and investment fund shares also continued to support overall inflows. By sector, services absorbed the majority of foreign investment, led by the information and communication subsector, reflecting sustained demand for digital infrastructure and technology-related activities. Mining and quarrying, together with construction, were the next largest beneficiaries of foreign capital. By origin, Singapore remained the top investing economy, followed by China and Hong Kong, underscoring continued regional confidence in Malaysia’s growth prospects and its strategic role in Southeast Asia.