Real Estate Subsector Records RM33.5 Billion in Approved Investments in 1H2026

Key figures

• ●Malaysia recorded RM218.5 billion in approved investments across 2,746 projects in 1H2026, up 11.7% year on year
• ●Real estate subsector recorded RM33.5 billion in approved investments in 1H2026
• ●Selangor led states with RM70 billion, followed by Johor with RM59.4 billion
• ●Data-centre and cloud-computing projects accounted for RM95.8 billion of approved investments
• ●Services sector attracted RM149.6 billion, or 68.5% of the total, up 21% year on year

News summary

Selangor and Johor emerged as Malaysia's leading investment destinations in the first half of 2026, accounting for RM129.4 billion, or about 59.2%, of the RM218.5 billion in approved investments recorded nationwide, according to the Malaysian Investment Development Authority (Mida).

Selangor led all states with RM70 billion in approved investments across 835 projects, followed by Johor with RM59.4 billion. Mida chairman Tengku Datuk Seri Zafrul Abdul Aziz said the half-year performance was powered by services and manufacturing, the country's two main investment engines. Kuala Lumpur ranked third with RM26.6 billion, including residential and serviced apartment developments linked to urban growth and transit-oriented development, followed by Penang with RM20.2 billion and Sarawak with RM10.8 billion.

The real estate subsector recorded RM33.5 billion in approved investments in 1H2026, forming part of the RM149.6 billion attracted by the services sector. Services accounted for 68.5% of total approved investments and recorded 21% year-on-year growth, comprising 1,750 projects expected to create 34,475 jobs.

Overall, Malaysia recorded RM218.5 billion in approved investments across 2,746 projects in the services, manufacturing and primary sectors in 1H2026, up 11.7% from RM195.5 billion a year earlier. The projects are expected to create 99,030 jobs. Foreign approved investments contributed RM126.9 billion, or 58.1% of the total, while domestic approved investments amounted to RM91.6 billion, or 41.9%.

Digital infrastructure remained a major contributor, with the information and communications subsector recording RM103.3 billion in approved investments, up 68.2% year on year. Of this, data-centre and cloud-computing projects accounted for RM95.8 billion, or close to 44% of all approved investments during the six-month period.

Looking ahead, Mida was reviewing 227 investment proposals worth RM72.1 billion as at Aug 10, comprising 128 services proposals worth RM36.5 billion and 99 manufacturing proposals worth RM35.6 billion, with a further RM58.4 billion in high-potential investment leads under discussion. Mida CEO Datuk Sikh Shamsul Ibrahim Sikh Abdul Majid said securing the commitment was only half the task, with approved projects needing to be translated into operating plants and jobs.