Press Release: Chinese Investment Adds RM31 Billion to Malaysia, Led by Massive Steel Plant: Juwai IQI
Kuala Lumpur, 16 July 2025 – When President Xi signed semiconductor and aviation agreements while visiting Malaysia in April 2025, he set the tone for a year in which Chinese investors channelled huge investments into the country, according to never before-seen data compiled and released today by Juwai IQI Co-Founder and Group CEO Kashif Ansari.
“The year 2024 was the second-biggest ever for Chinese capital, with RM31 billion finding its way to Malaysia. We’re releasing this new, unique dataset on foreign direct investment today. It has never before been reported.
“The 2024 total is more than double that of 2023 and the most since 2015. Looking forward, we expect another year of at least RM30 billion in Chinese investment in 2025. This time, battery and solar component lants will most likely account for a larger share.
“The benefits of foreign investment include new jobs and productive assets, as well as the transfer of expertise to Malaysia. Look at the East Coast Rail Link. China Communications Construction is managing construction, but the project directly employs more than 16,000 Malaysian workers. Four-tenths of the civil works are being done by local contractors, including a large portion of Bumiputera companies.
| Chinese Investment by Sector (2024) | |
| Sector | Investment Total (RM) |
| Metals | 8.1 billion |
| Energy | 3.4 billion |
| Other | 2 billion |
| Finance | 0.7 billion |
| Technology | 0.4 billion |
“Foreign investment also delivers longer-term benefits. Look at the Rail Link again. Once it is complete, projections say it will boost Malaysia’s gross domestic product by 3.8%. And while job numbers are difficult to predict, growth of 3.8% would likely generate more than 90,000 new jobs to the economy. For example, Malaysia’s 5.1% GDP growth in 2024 created about 127,000 new private sector jobs.”
Riding a Wave of Investment Capital
Mr. Ansari also said that “Malaysia’s economy is riding a wave of money from overseas, and Mainland China plus Hong Kong is the largest source. Malaysia is proving once again that it is a key Asian economy. We benefit greatly from being part of ASEAN and from having a big economy like China in our neighbourhood.
“It’s not just China that is pumping ringgit into Malaysia. Singapore actually outdoes China in having accumulated the largest total investment stock in Malaysia, although its 2024 flows to Malaysia were smaller. The United States is the other top-three source of inbound investment.
“You can break out the total capital flows from China of RM31 billion into two parts. Construction accounts for 52% of the total, and direct investment flows, or FDI, contribute 48%.
“Three headline investments defined 2024: Hebei Xinwu’an’s RM8.12 billion for its steel plant, Tibet Yiwei/EVE Energy’s RM1.8 billion to produce batteries, and Jingxing Paper’s RM1 billion deal.
“When you look at it by sector, the metals sector dominated investment activity, thanks to Hebei Xinwu’an. Energy was the next most important sector, with RM3.4 billion. Finance and technology followed, with RM700 million and more than RM400 million, respectively.
Johor-Singapore SEZ a Big Winner
“Johor is the destination for large-scale industrial and logistics projects. You see that not just in our data but also in last month’s numbers from the Menteri Besar. He said that foreign investment in Johor is up sevenfold year-on-year.
“The Special Economic Zone is a major point of interest for our corporate clients in China, especially manufacturers.
“We get the same questions from company after company that is considering moving to the Special Economic Zone. Chinese companies’ top three questions about the special economic zone have to do with the headline tax incentives on offer, which flagship zone best matches their industry, and the speed of cross-border cargo clearance.
“By contrast with Johor, we see Kuala Lumpur as a centre for urban transport and technology. Meanwhile, Selangor attracts energy infrastructure that underpins the state’s manufacturing base.
“Now, let’s look forward for a moment. With Malaysia’s New Industrial Master Plan targeting high-value manufacturing and green growth, we expect sustained investor interest in 2025, especially in renewable energy and advanced electronics. The government is offering deep tax breaks, quick licensing, and sector blueprints. That’s why we expect another year of at least RM30 billion in Chinese investment.”
| China has invested 127 billion ringgit into Malaysia since 2008 | |||
| Year | Construction (RM Bln) | Investment (RM Bln) | Total (RM Bln) |
| 2008 | 7.8 | 0 | 7.8 |
| 2010 | 7.7 | 1.5 | 9.2 |
| 2011 | 6.2 | 7.8 | 14 |
| 2012 | 13.2 | 2 | 15.1 |
| 2013 | 8.2 | 13.7 | 21.9 |
| 2014 | 6.7 | 1.7 | 8.4 |
| 2015 | 6.1 | 28.4 | 34.5 |
| 2016 | 7 | 10.7 | 17.7 |
| 2017 | 12.9 | 3.4 | 16.2 |
| 2018 | 11.6 | 6 | 17.7 |
| 2019 | 12.9 | 5.7 | 18.5 |
| 2020 | 0.4 | 3.3 | 3.7 |
| 2021 | 0 | 1.3 | 1.3 |
| 2022 | 5.8 | 5.3 | 11.1 |
| 2023 | 4.2 | 10.9 | 15 |
| 2024 | 15.8 | 14.7 | 30.5 |
Demand Surges for Commercial Real Estate
“The strong inflow of direct investment we have discussed here will have a significant impact on the real estate market. Industrial and logistics property will be in high demand. The new steel plant and battery facility are examples of projects that are driving surging demand for large-scale industrial land. The fact that offshore companies are inquiring about zoning and tax incentives, as well as cross-border logistics, also suggests demand for commercial and industrial property will remain strong. There is another factor: Malaysia’s new Industrial Master Plan will also fuel demand for industrial parks and green-certified commercial buildings.
“Finally, the fact that construction forms 52% of total Chinese inbound capital flows suggests direct and robust investment into assets like factories, transport, and logistics centers. The property markets in the Johor Special Economic Zone, Greater Kuala Lumpur, and Selangor are all likely to benefit.”
Methodology
IQI has aggregated the investment data from official and industry various sources, most importantly the AEI China Global Investment Tracker. Our table is based on transactions as reported by the corporations themselves, which allows us to track mainland Chinese investments even if they are made via intermediate locations, such as Hong Kong or Singapore. The data focuses on the most significant investments and leaves out transactions worth less than RM425 million (US$100 million). Please contact us for the complete data set. Monetary values were converted from U.S. dollars at a rate of RM4.2513.
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