KUALA LUMPUR, May 15 (Xinhua) - Malaysia's current account balance surged to a surplus of 15.2 billion ringgit (3.85 billion U.S. dollars) in the first quarter of 2026, a sharp increase from 2.7 billion ringgit in the previous quarter, official data showed Friday.

The improvement was driven mainly by a wider surplus in the goods account and continued strength in the services account, the Department of Statistics Malaysia said in a statement.

On the financial account, Malaysia posted a net inflow of 27.4 billion ringgit, supported by broad-based investment inflows, particularly in direct and portfolio investment.

Foreign direct investment (FDI) remained the largest contributor, recording a net inflow of 22.8 billion ringgit, compared with 26.6 billion ringgit in the previous quarter.

The inflows were mainly driven by debt instruments, especially loans from abroad, followed by equity and investment fund shares.

By sector, FDI was channeled largely into the services sector, particularly information and communications, while mining and quarrying also attracted significant inflows.

Meanwhile, direct investment abroad (DIA) rose to 8.1 billion ringgit from 4.1 billion ringgit in the fourth quarter of 2025, reflecting higher outflows in equity, investment fund shares and debt instruments. Outbound investments were concentrated in the services sector, especially financial activities.

Singapore, Thailand and Indonesia were the primary destinations for Malaysian outward investment during the quarter. (1 ringgit equals 0.25 U.S. dollar) ■