Foreign investment in Malaysia's manufacturing and services sectors jumped 69 percent to a record high of US$13.7 billion in 2007, Trade Minister Rafidah Aziz said today.

In the manufacturing sector, foreign investment was worth RM33.4 billion, while in the services sector it came to RM10.8 billion, she said.

Rafidah said the uncertain global outlook would likely have an impact on investment flows, with intense competition continuing in 2008.

"The ability to continue to attract sizeable investments is going to be increasingly challenging," she said in a speech.

The minister said Japanese investments in the manufacturing sector had been increasing rapidly since 2003, reaching a peak of RM6.5 billion in 2007.

Germany was the second-largest source of investment behind Japan, mainly in the electronics and electrical and petroleum products sectors, she said.

- AFP