Johor targets foreign investment from US, UK

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Johor investment, trade and consumer affairs committee chairman Lee Ting Han.

JOHOR BARU: Johor is in active talks with interested parties from countries such as the United States and the United Kingdom to bring in more foreign direct investments into the state.

After emerging as the state with the highest investment value, pegged at RM60.9bil in the first half of the year, Johor is now trying to bring in US and UK investors that are keen on setting up data centres and medical device manufacturing facilities here, said state investment, trade and consumer affairs committee chairman Lee Ting Han.

He noted that China, Singapore and South Korea were the top three countries that poured direct investments into in Johor between January to June, with China accounting for roughly 60%, or RM40bil, of the total figure.

“The funds primarily went into setting up data centres, which involved costs for land acquisition and sophisticated facilities.

“So far, the global political situation has not impacted the state in terms of receiving investments from China and Taiwan, and we remain in a position of welcoming investments that will benefit the people and country,” he said.

Lee was speaking to reporters after the exchange of a memorandum of understanding between the Standards and Industrial Research Institute of Malaysia and its strategic partners, during the agency’s industry engagement day at Persada Johor here yesterday.


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Lee added that Singapore, which primarily invested in the manufacturing sector, and South Korea (food processing and petrochemicals) came in second and third place, respectively, as the top investors for the state in the first half of the year.

“Investors from South Korea and Japan are also interested in the chemical and petrochemical industries in Johor.

“Such talks usually involve timeline discussions as well as examining human capital and infrastructure, which is why the Johor Mentri Besar has emphasised cutting the red tape to ease investors’ decision-making processes.

“The investors must make sure they have all the ingredients in place before they can make a decision, so we will have to see how it goes in the next six months. It could even be dragged on into the first quarter of next year,” he said.

The Malaysian Investment Development Authority reported on Sept 2 that the RM60.9bil investment was an increase of 822% over the same period in 2021.

From January to June 2022, the service sector recorded RM54.2bil of investments, which accounted for almost the entire amount of investments with the presence of foreign-based data companies – RM6.7bil went to the manufacturing sector, while the primary sectors, distribution, transportation and logistics, registered RM30mil.

As a result of the investments, about 6,200 job opportunities were created, said Lee, adding that an important aspect of the projects was the spillover effects that would benefit the surrounding industries as well as small and medium enterprises.

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