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KUALA LUMPUR, June 8 — Malaysia has secured RM92.8 billion in approved investments for the first quarter of 2026 (1Q 2026), with Japan emerging as the largest foreign investor and domestic investment recording its strongest year-on-year growth in the reporting quarter.
In a statement today, the Malaysian Investment Development Authority (MIDA) said the investments comprise 1,249 projects across the services, manufacturing and primary sectors.
“While the total value recorded a marginal 0.2 per cent decline compared to RM93.0 billion in 1Q 2025, approved projects are expected to create 50,226 new jobs, representing a 46.7 per cent increase from the same period last year, underscoring stronger labour market impact from approved investments.
“Foreign investments accounted for 60.5 per cent or RM56.2 billion of total approved investments, while domestic investments grew 13.0 per cent year-on-year (y-o-y) to RM36.6 billion, representing 39.5 per cent of total approvals, reflecting growing confidence among Malaysian businesses,” it said.
MIDA said that among foreign investors, Japan emerged as the largest source of approved investments, with RM21.5 billion, a significant increase from RM1.6 billion recorded in 1Q 2025, followed by the People’s Republic of China (RM10.1 billion), the United States (RM10.1 billion), Singapore (RM6.7 billion) and Thailand (RM2.5 billion).
It said the strong Japanese investment performance reflected the deepening economic ties between Malaysia and Japan under the Malaysia-Japan Comprehensive Strategic Partnership established in December 2023.
“Notably, 93.6 per cent of Japanese approved investments in 1Q 2026 were channelled into digital transformation activities, reflecting Malaysia’s growing role in regional high-technology and digital supply chains,” it said.
Across the states and federal territories, MIDA said Selangor recorded the highest value of approved investments at RM33.5 billion, followed by Johor (RM16.9 billion), the Federal Territory of Kuala Lumpur (RM16.9 billion), Penang (RM6.2 billion) and Sarawak (RM4.0 billion).
“The top three states have solidified their standing as global data centre hubs, underpinned by a proven track record in attracting investments from tech giants.
“This success is driven by the integration of Cyberjaya’s mature infrastructure, Johor’s strategic positioning as a key alternative to Singapore, and Kuala Lumpur’s role as the nation’s primary network connectivity and financial heart,” it added.
MIDA chairman Tengku Datuk Seri Zafrul Abdul Aziz said the 1Q 2026 investment performance sends a clear signal that Malaysia’s economic fundamentals are strong, with both global and domestic investors continuing to place confidence in the nation.
“With gross domestic product (GDP) growing at 5.4 per cent and Moody’s projecting Malaysia as the fastest-growing A-rated economy over the next two years, we are proving that Malaysia is not just participating in regional value chains.
“We are emerging as a strategic hub for the industries that will define Asean and Asia’s next decade,” he said.
The investment authority said the services sector remained the largest contributor, accounting for RM60.8 billion or 65.5 per cent of total approved investments, involving 731 projects expected to create 19,758 new jobs.
“Growth was mainly driven by the information and communications subsector, which contributed RM38.9 billion, supported by growing global demand for artificial intelligence (AI) and digital transformation.
“Investments in data centres and cloud computing alone accounted for RM34.6 billion across 33 projects, representing 88.9 per cent of the subsector’s total approvals,” it said.
MIDA said the manufacturing sector attracted RM24.1 billion in approved investments across 501 projects and is expected to create 30,468 jobs, representing 60.7 per cent of total expected jobs, with the key industries including electrical and electronics (RM6.0 billion), chemicals (RM3.9 billion), machinery and equipment (RM3.5 billion), food manufacturing (RM3.3 billion) and transport equipment (RM2.2 billion).
As for the primary sector, it recorded RM7.9 billion in approved investments across 17 projects, up 418.2 per cent from a year ago, driven entirely by oil and gas projects involving offshore development and exploration activities, particularly in Sarawak.
MIDA said Malaysia’s investment outlook remains resilient, supported by a steady pipeline of quality investment proposals, whereby as at May 5, 2026, MIDA is facilitating a solid pipeline of 182 potential projects, collectively valued at RM38.3 billion.
“MIDA is also in active discussions for an additional RM91.0 billion worth of potential investments, signalling sustained investor interest and confidence in Malaysia’s long-term economic direction and pro-business policies,” it added.
Meanwhile, MIDA chief executive officer Datuk Sikh Shamsul Ibrahim Sikh Abdul Majid said Malaysia’s investment performance reflects the country’s strong facilitation and project execution capabilities.
“Despite continued global headwinds, Malaysia remains firmly on investors’ radar, supported by clear policies, strong economic fundamentals, and our ability to move projects from approval to operationalisation.
“The Asia Manufacturing Index 2026 ranks Malaysia second in Asia after China, our highest position in the index to date, and it is matched by results on the ground: of the manufacturing projects approved since 2021, over 85 per cent had reached various stages of implementation as of February 2026,” he added. — Bernama
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A friend sent me a William Blair research report this week that characterized enterprise AI adoption as “a mile wide and an inch deep.”
Just about every organization has started to use AI tools in some fashion. But there’s little orchestration of how those tools are actually used. And very little alignment across the enterprise.
A 2025 MIT report suggested that 95% of enterprise Generative AI pilots failed to deliver significant ROI or move beyond experimentation. The report flags not the quality of the tools, but to strategic misalignment as the primary driver.
Of course, strategic misalignment is an age-old challenge for organizations. AI acceleration just further exposes the rift.
Hugh Derrick at eatbigfish recently pointed to Harvard Business Review research that strategic alignment is up to 3X lower than leaders think. As he put it:
“So when you layer AI-driven speed on top, you don’t magically become more effective. You run the risk of getting faster at being inconsistent (and yes, you’ll create a lot more ‘stuff’ along the way)…
“And it matters most in big, complex organizations where silos already slow everything down. When 30% of senior leaders point to silos as a root cause of productivity stagnation, and two‑thirds say their organizations are overly complex, adding more speed to a fragmented system doesn’t fix the system. It just creates more noise.”
Here are a few related cartoons I’ve drawn over the years:
The post Misalignment at Speed first appeared on Marketoonist | Tom Fishburne.
JUNE 2 — We are living through one of the most rapid waves of digital transformation in modern history. Artificial intelligence drafts our emails, generates our presentations and increasingly supports decision-making processes that once required teams of analysts. The dominant instinct in many organisations is to adopt more tools, automate more workflows and accelerate everything that can be accelerated.
Yet amid this surge toward optimisation, an interesting counter current has begun to emerge. A recent Fast Company article argues that in order to think clearly, learn deeply and remain cognitively sharp, professionals may need significantly less technology in certain aspects of their work. The idea may sound nostalgic at first. In practice, it is strategic.
The more we automate cognitive effort, the more we must be intentional about preserving it.
One of the simplest examples is the habit of writing by hand. Research cited in the article suggests that handwriting engages deeper cognitive processing than typing. When we write by hand during meetings or while thinking through a problem, we cannot capture everything verbatim. We are forced to prioritise, to interpret and to synthesise in real time. That mental filtering process strengthens understanding.
In many leadership discussions, I have observed that digital note-taking often encourages volume over insight. Screens allow us to record extensively, but not necessarily to reflect. Handwriting, by contrast, slows the pace just enough to deepen thought. In an environment where AI can instantly summarise a transcript, the true advantage lies not in how quickly we capture information, but in how well we internalise it.
For Gen Z professionals who have grown up in fully digital environments, this may feel unfamiliar. Yet I have noticed a growing number of younger employees experimenting with analogue tools precisely because they sense the cognitive fatigue that constant screen exposure creates. This is not a rejection of technology. It is a recalibration.
The same principle applies to collaboration.
Remote meetings and digital whiteboards have expanded flexibility and reduced logistical friction. However, the Fast Company piece highlights research indicating that physical co-presence generates more spontaneous and diverse creative exchanges. When individuals share a physical space, subtle cues, interruptions and informal contributions often produce ideas that would not surface in a structured video call.
In sectors such as healthcare or biomedical innovation, where interdisciplinary collaboration is essential, these nuances matter. A prototype may begin as a half-articulated thought sketched on a physical whiteboard. A regulatory concern may emerge from a casual remark during a live discussion. Creativity rarely follows a neat agenda.
As organisations integrate AI tools into daily workflows, the temptation is to make collaboration increasingly efficient and structured. Yet over-structuring can narrow the range of perspectives considered. Real brainstorming, without screens and without slide decks, creates space for exploration before refinement. It signals that ideas are allowed to evolve before they are judged.
The third habit that deserves renewed attention is the simple act of sharing time face to face, often over something as ordinary as coffee. Casual exchanges are frequently dismissed as unproductive. However, research referenced in the article points to the strong connection between in-person social interaction and cognitive performance. Beyond individual well-being, these interactions build trust and belonging.
In hybrid workplaces, loneliness is an emerging risk, particularly for younger professionals who are still forming their professional identity. Early-career employees learn not only through formal training but through observation and informal conversation. A brief discussion about how a senior colleague approaches a problem can transmit more tacit knowledge than a formal document ever could.
For leaders, the lesson is not to retreat from technology. AI will continue to shape the workplace, and rightly so. The lesson is to recognise that as digital systems become more capable, human capabilities must be cultivated deliberately rather than assumed.
Handwriting reinforces disciplined thinking. In-person brainstorming strengthens collective creativity. Informal conversations deepen trust and cultural cohesion. These practices may appear modest in comparison to sophisticated AI systems, yet they sustain the cognitive and relational infrastructure on which those systems ultimately depend.
Gen Z will enter workplaces defined by digital fluency. Their advantage, however, will not come from mastering the most applications. It will come from balancing fluency with depth. The organisations that understand this balance will be better positioned to navigate technological acceleration without eroding the human judgment that gives technology its value.
As we invest in more advanced tools, we would do well to invest equally in habits that preserve attention, reflection and genuine connection. In doing so, we are not stepping backward. We are ensuring that progress remains anchored in the very qualities that make work meaningful and sustainable.
* Ts. Elman Mustafa El Bakri is CEO and Founder of HESA Healthcare Recruitment Agency and serves on the Industrial Advisory Panel for the Department of Biomedical Engineering, Universiti Malaya.
** This is the personal opinion of the writer or publication and does not necessarily represent the views of Malay Mail.
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