AP reported that approved foreign investment in Malaysia's manufacturing sector plunged by 52% YoY to MYR 22.1 billion in 2009 amid the global economic slump but is expected to rebound this year.

The trade ministry in its annual industry report said that the 2009 foreign investment level was encouraging amid the global slowdown, accounting for about 68% of total investment in the manufacturing sector.

Overall, it said total approved manufacturing investments fell 48% to MYR 32.6 billion but still above its official annual target of MYR 27.5 billion.

Mr Mustapa Mohamad Malaysian trade minister said that the government is targeting MYR 40 billion in total approved manufacturing investments this year, up by 22.7% YoY from 2009. However, for the first 4 months of 2010, total approved investments reached only MYR 7.1 billion.

Mr Mustapa insisted the 2010 target might still be reached. He said that "It is doable. Normally things move a bit sluggishly in the first half but as the year goes on, it will gather momentum. We already have a few very sizable investments in the pipeline."

Mr Mustapa said that Malaysia inked a free trade pact with New Zealand last year and with Chile in April. It is on track to sign an economic pact with India by year end and to conclude FTA talks with Australia, as well as exploring possibility of trade pacts with the EU and the Gulf Cooperation Council.

(Sourced from Associated Press)