Foreign investment in approved manufacturing projects in Malaysia reached 20.2 billion ringgit (5.46 billion U.S. dollars) in 2006, the highest level chalked up to date, local press reported Wednesday.

The figure is a big improvement compared with 17.9 billion ringgit (4.84 billion U.S. dollars) in 2005 and 13.1 billion ringgit (3.54 billion U.S. dollars) in 2004.

International Trade and Industry Minister Rafidah Aziz announced the figures Tuesday when releasing the Malaysian Industrial Development Authority's annual report on the performance of the manufacturing and services sectors.

"Despite the increasing global competition, Malaysia continues to attract global foreign investment, reflecting the country's cost-competitiveness as a manufacturing and export base," Rafidah was quoted as saying by the New Straits Times.

Taking into account both local and foreign investments, a total of 1,077 projects involving investments of 46 billion ringgit (12. 43 billion U.S. dollars) were approved last year compared with 31 billion ringgit (8.38 billion U.S. dollars) in 1,027 projects in 2005.

The figures exceeded Malaysia's Third Industrial Master Plan ( 2006-2020) target. Projects approved during the period are expected to create 88,952 jobs, of which 66 percent will be in the managerial, technical, supervisory and skilled manpower categories.

Japan led the foreign direct investments (FDIs) inflow last year with 4.4 billion ringgit (1.19 billion U.S. dollars), followed by the Netherlands, 3.3 billion ringgit (891.89 million U. S. dollars), Australia, 2.6 billion ringgit (702.7 million U.S. dollars), the United States, 2.5 billion ringgit (675.68 million U. S. dollars) and Singapore, 1.9 billion ringgit (513.51 million U.S. dollars).

Source: Xinhua