FX.co ★ Malaysia Q2 FDI Inflows Fall to One-Year Low

Malaysia’s foreign direct investment (FDI) inflows fell sharply to MYR 7.4 billion in Q2 2026, down from MYR 22.8 billion in the previous quarter, reaching their lowest level since Q2 2025. This steep quarter-on-quarter decline underscores the continued vulnerability of Malaysia’s FDI performance amid a more cautious global investment climate. By sector, inflows were concentrated in services, driven in particular by the information and communication subsector, followed by manufacturing and construction. The main sources of investment were China, Hong Kong, and Singapore.