KUALA LUMPUR, Feb 4 (Bernama) -- The Malaysian Industrial Development Authority (MIDA) approved RM32.6 billion investments for 766 projects in the manufacturing sector last year.

This despite the acute deterioration in the global economic and financial environment, International Trade and Industry Minister Datuk Seri Mustapa Mohamed said Thursday.

He said the figure surpassed by RM5.1 billion or 18.5 per cent the annual target of RM27.5 billion set under the Third Industrial Master Plan Three.

Foreign investments accounted for 67.8 per cent of the approved investments with RM22.1 billion, he told a press conference on the performance of the manufacturing and services sectors in 2009 here today.

Three sub-sectors, namely chemicals and chemical products, non-metallic and mineral products, and electronic and electrical products received RM16.3 billion or 73.8 per cent of the total foreign investment approved.

Mustapa said the major sources of foreign investment were Japan, Hong Kong, the United States, Singapore and Taiwan.

Of the 766 projects approved, 471 were new involving investments of RM22.1 billion or 67.8 per cent of the total.

Foreign investments in these new projects amounted to RM16.4 billion or 74.2 per cent of total foreign investment approved.

On domestic investments, Mustapa said, RM10.5 billion or 32.2 per cent of the total investment were approved in 2009.

Three sub-sectors, namely metal products, chemicals and chemical products, and non-metallic mineral products, accounted for RM4.6 billion or 43.8 per cent of the total domestic investment approved in the manufacturing sector.

In the services sector, Mustapa said, 2,720 projects with investments of RM36.3 billion were approved in 2009 with domestic making up 90.6 per cent of the total.

These projects were expected to provide 37,357 employment opportunities.

Major approvals in the services sector were in transport (RM7.9 billion), energy (RM6.8 billion), financial services (RM4.3 billion), real estate (RM4.2 billion) and telecommunications (RM3.8 billion).

A total of 740 projects with investments of RM5.4 billion were approved for regional establishments, support services and MSC Status Companies in 2009.

Mustapa said MIDA would continue its efforts to promote foreign direct investment into the manufacturing and services sectors.

Eight investment missions would be organised to Asia, Europe, the United States and Australia this year, he said, adding that MIDA would also organise 18 specialised project missions targeting at specific industries and services sub-sectors.

MIDA would also continue with its efforts to increase domestic investment into the manufacturing and services sectors.

YB. Dato' Sri Mustapa Mohamed at MIDA Annual Media Conference on The Performance Of The Manufacturing and Services Sectors in 2009

-- BERNAMA