SHAH ALAM, July 30 — The Investment, Trade, and Industry Ministry (MITI) does not impose quotas or key performance indicators (KPIs) for domestic and foreign investments, as investment flows should be driven by market conditions rather than fixed targets.
Its deputy minister Sim Tze Tzin said the government views domestic and foreign investments as complementary, with their respective roles shaped by investor confidence and prevailing economic conditions.
“We do not set KPIs for domestic and foreign investment. It depends on the situation,” he said during the question and answer session in the Dewan Negara today.
Sim added that Malaysia’s favourable geopolitical position and neutrality have continued to attract foreign investors, which, in turn, encouraged local companies to expand and reinvest.
“When foreign investors have confidence in Malaysia, domestic companies also become confident and invest.
“This is something that is very positive for Malaysia at the moment,” he said.
The government also supports domestic investors through the New Incentive Framework and by linking local companies with multinational corporations to enable them to become part of global supply chains.
Earlier, Sim reiterated that Malaysia approved RM1.8 trillion in investments between 2021 and March 2026, of which RM818.5 billion came from domestic sources and RM996.4 billion from foreign investors.
Domestic investment had more than doubled over the same period, reflecting stronger confidence among local businesses, while foreign investment continues to support domestic investment growth.
