Last year, total investments reached RM219 billion and created over 437,000 jobs.
He said as at September this year, there were 245 proposals for manufacturing projects and 171 for services projects with the estimated total investments of almost RM28 billion.
Mustapa said this at a media briefing here today on the investment performance for the first nine months of this year.
He said Malaysia recorded investment totalling RM172.3 billion in the services, primary and manufacturing sectors, up 9.1 per cent as compared with RM158 billion in the same period last year.
The bulk of the investments came from domestic sources, which contributed RM119.8 billion, or 69.5 per cent, to the total investments, while foreign sources contributed RM52.5 billion, or 30.5 per cent, he said.
"This is in line with the goals of the Economic Transformation Programme to have domestic direct investment-to-foreign direct investment ratio of 73:27 by 2020," he said.
Mustapa said the services sector was the largest contributor in terms of investments, number of projects and employment opportunities.
The sector contributed RM96.6 billion during the period compared with RM104.6 billion in the same period last year, he said, adding that the government would continue to explore the potentials of knowledge-intensive services.
"These include under-developed sectors and sub-sectors, such as maintenance, repair and overhaul as well as oil and gas services," he said.
In the manufacturing sector, Mustapa said, a total of RM63.5 billion in investments approved during the period set a record.
Of this, 55.1 per cent was from foreign sources while 44.9 per cent was from domestic, he said.
"This highlights Malaysia's competitiveness as a location of choice for high value-added manufacturing activities in the region," he said.
Out of the 619 projects approved, Johor recorded the highest amount of investment (RM20.1 billion), followed by Sarawak (RM10 billion), Penang (RM6 billion), Selangor (RM5.7 billion) and Pahang (RM5 billion), he said.
Mustapa said the leading sources of foreign investments for the first nine months were Japan, Singapore, China, Germany and South Korea.
"The manufacturing projects approved will create 65,400 jobs with 84.7 per cent being high-skilled," he said.
He said primary sector recorded a total of RM12.2 billion compared with RM18.4 billion in the same period last year.
"This sector is currently performing well in Johor, especially the on-going Petronas' Refinery and Petrochemical Integrated Development project in Pengerang," he said.