A total of 5,669 investment projects were approved last year, and are expected to create some 192,000 jobs, offering more managerial, supervisory and technical positions with higher income to Malaysians, the minister said.
About 72.5 per cent of last year's investments were local projects, while the rest were foreign direct investments.
"This is in line with the government's target of reaching a domestic direct investment-to-foreign direct investment ratio of 73:27 by 2020," he told a press conference on 'Malaysia's Investment Performance 2013', in Kuala Lumpur.
Mustapa said the record high in last year's approved investments was fuelled by the services, manufacturing and primary sectors.
Approved investments in the services sector registered RM144.7 billion last year, up from RM122.9 billion in 2012, while investments in the manufacturing sector rose to RM52.1 billion from RM41.1 billion in 2012.
Investments in the primary sector -- mining, agriculture, plantation and commodities -- surged to RM19.7 billion from RM3.8 billion, he said.
"This is a boost of confidence in terms of both foreign and local investments in the country," said Malaysian Investment Development Authority chief executive officer, Datuk Azman Mahmud.
Foreign investors were attracted to Malaysia's ease of doing business, Azman said, citing World Bank's Ease of Doing Business 2013 Report that increased Malaysia's ranking to sixth place from 12th spot previously.
"The government's implementation of fiscal measures and the Economic Transformation Programme have add to the appeal for foreign investors to do business here," he added.