KUALA LUMPUR -- Overlooked by the media, but not by investors, Malaysia continues to be a quiet hot spot for foreign investment in electronics manufacturing.

Outside investors poured $4.9 billion into manufacturing facilites in Malaysia last year, the highest mark since 2001, according to the nation's trade ministry. Electrical and electronics products accounts for half the Southeast Asia nation's annual exports.

Intel invested $274 million to expand a plant in Kedah state, while Flextronics spent $272 million to expand its EMS facilities in Johor state.

Overall, $8.3 billion was spent on manufacturing here last year, up 8%, the International Trade and Industry said. The agency has set a goal of $6.7 billion in annual investment. By contrast, about $60 billion in annual foreign investment is spent in China each year.

Manufacturing accounts for nearly one-third of the domestic economy and employs 28.4 percent of the labor force.

The U.S. was the leading outside investor in Malaysia last year, followed by Japan, Singapore, the Netherlands and South Korea.

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