Selangor and Johor lead RM218.5b approved investments in 1H2026; real estate subsector records RM33.5b
Selangor and Johor accounted for 59.2% of Malaysia's RM218.5 billion in approved investments in the first half of 2026. The real estate subsector recorded RM33.5 billion in approved investments, part of the services sector's RM149.6 billion total.
PETALING JAYA – Selangor and Johor emerged as Malaysia’s leading investment destinations in the first half of 2026 (1H2026), accounting for RM129.4 billion or about 59.2 per cent of the country’s RM218.5 billion in approved investments. The Malaysian Investment Development Authority (Mida) attributed the performance to the services and manufacturing sectors, which it called the two main investment engines.
Selangor led all states with RM70 billion in approved investments across 835 projects, followed by Johor with RM59.4 billion. W.P. Kuala Lumpur ranked third with RM26.6 billion, including residential and serviced apartment developments linked to urban growth and transit-oriented development. Penang followed with RM20.2 billion, led by advanced manufacturing and semiconductors, while Sarawak recorded RM10.8 billion, mainly from offshore oil and gas exploration projects.
The real estate subsector recorded RM33.5 billion in approved investments during the period, forming part of the RM149.6 billion attracted by the services sector. Services accounted for 68.5 per cent of Malaysia’s total approved investments and recorded 21 per cent year-on-year growth, with 1,750 projects expected to create 34,475 jobs. Foreign approved investments in services rose 66.7 per cent to RM86.9 billion, while domestic approved investments totalled RM62.7 billion.
Overall, Malaysia recorded RM218.5 billion in approved investments across 2,746 projects in 1H2026, up 11.7 per cent from RM195.5 billion a year earlier. Foreign approved investments contributed RM126.9 billion or 58.1 per cent of the total, while domestic approved investments amounted to RM91.6 billion or 41.9 per cent. The projects are expected to create 99,030 jobs.
Digital infrastructure remained a major contributor, with the information and communications subsector recording RM103.3 billion in approved investments, up 68.2 per cent year on year. Data-centre and cloud-computing projects accounted for RM95.8 billion or close to 44 per cent of all approved investments during the six-month period, driven by regional demand for AI computing power. Mida said the Data Centre Task Force considers projects with secured power and water supply and demonstrable green compliance, while prioritising operators that support the local supply chain.
Mida chairman Tengku Datuk Seri Zafrul Abdul Aziz said the half-year performance was powered by the services and manufacturing sectors, which showcase quality as well as scale. He added that services growth was led by digital and information technology investment, helping to build the foundation for Malaysia’s AI Nation 2030 ambitions. Mida CEO Datuk Sikh Shamsul Ibrahim Sikh Abdul Majid said securing investment commitments was only half the task, with the other half being turning them into operating plants and jobs on the ground, adding that Mida works with ministries and agencies through the Invest Malaysia Facilitation Centre to help investors overcome regulatory and implementation hurdles.
