KUALA LUMPUR: Foreign-linked companies operating in Malaysia contributed 17.1 per cent to the national economy in 2024, according to the Statistics Department.
In its Statistics on Foreign Affiliates in Malaysia 2024 report, the department said the value added by these companies rose 1.44 per cent to RM323.1 billion in 2024 from RM318.5 billion a year earlier.
Compared with 2020 when economic activity was affected by the Covid-19 pandemic, the value added grew by 34.1 per cent from RM241 billion.
The number of foreign-linked companies operating in Malaysia climbed four per cent to 3,230 in 2024 from 3,101 in 2023, while their workforce grew to 983,512 employees from 945,436.
Total employee compensation also rose 3.6 per cent to RM60 billion from RM57.9 billion, the department said.
The manufacturing sector remained the largest contributor to foreign-linked companies' value add, rising 4.7 per cent to RM165.4 billion in 2024 from RM158 billion in 2023.
The services sector followed, with the value add increasing 6.4 per cent to RM83.1 billion from RM78.1 billion.
However, value add in mining and quarrying slipped 0.89 per cent to RM77.8 billion from RM78.5 billion, the department stated.
Construction jumped 18 per cent to RM4 billion from RM3.4 billion, while agriculture remained unchanged at RM600 million.
By region, Asia accounted for the largest number of foreign-linked companies operating in Malaysia, with 2,074, or 64.2 per cent of the total.
Europe followed with 673 companies, representing 20.8 per cent, while the Americas accounted for 412, or 12.8 per cent.
MALAYSIAN FIRMS ABROAD'S TURNOVER ROSE
Meanwhile, turnover generated by Malaysian companies operating overseas rose 8.3 per cent to RM371.9 billion in 2024 from RM343.3 billion in 2023.
The Statistics on Malaysian Affiliates Abroad 2024 report showed that the number of Malaysian companies operating overseas edged up to 2,413 in 2024 from 2,404 a year earlier.
Their total workforce declined to 433,801 employees from 437,484, while employee compensation grew 6.3 per cent to RM27.1 billion from RM25.5 billion.
The services sector accounted for the largest share of overseas turnover, contributing RM252.1 billion, or 68 per cent of the total, up nearly 10 per cent from RM229.6 billion, or 66.9 per cent, in 2023.
Manufacturing turnover rose two per cent to RM63.2 billion from RM61.9 billion, although its share of total turnover declined to 17 per cent from 18 per cent.
Agriculture recorded stronger growth, with turnover jumping 25 per cent to RM20.3 billion from RM16.2 billion. Its share of total turnover rose to 5.5 per cent from 4.7 per cent.
Indonesia was the largest contributor among the major overseas markets, generating RM68.9 billion in turnover, or 18.5 per cent of the total, up 75 per cent from RM39.4 billion in 2023.
Turnover generated in Vietnam rose sharply to RM38.1 billion from RM3.9 billion, while the United Kingdom recorded an increase to RM27.3 billion from RM6.2 billion.
In contrast, turnover from Singapore dipped 48 per cent to RM29.1 billion from RM55.8 billion, while Australia's contribution fell 59 per cent to RM22.3 billion from RM54.7 billion.
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