MY needs to remain a 'neutral' country to become primary investment destination, says minister

Malaysia needs to continue playing its role as a 'neutral' country with a strong ecosystem in the technology sector to ensure the country remains an investment destination, investment, trade and industry minister Zafrul Abdul Aziz reportedly said. 

Speaking at the Agenda Awani programme titled 'Tech war', Zafrul reportedly said that Malaysia's economy is open and has established cooperative relations with all countries. 

He reportedly added that Southeast Asia is neutral, has good demographics and a growing, stable and peaceful economy. 

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In addition, the minister reportedly said that Malaysia and Singapore are two countries that have been involved in the semiconductor sector for a long time. He added that Malaysia, being over 50 years old, and having a good ecosystem that is almost complete and mature, is the reason why investment is increasing in the sector, reported Bernama. 

The investment inflows are also supported by recent data which showed Malaysia recorded approved investments of RM88.7 billion in various fields in the first quarter, according to Bernama. This represents an increase of 13% from RM74.1 billion in the same period last year, it added. 

In tandem, Zafrul reportedly said that the gross domestic product (GDP) is expected to grow 5.8% in the second quarter of 2024, with the manufacturing sector growing by 4.7%, which is boosted by the electrical and electronic sector. 

He reportedly added that in terms of trade, Malaysia has 16 free trade agreements (FTAs) with all groups including Brazil, Russia, India, China and South Africa, which discusses global south issues. 

Malaysia is also together with the United States in the Indo-Pacific Economic Framework (IPEF) and are recently starting discussions with the European Union on the Malaysia-EU Free Trade Agreement (MEUFTA), Zafrul reportedly said. 

The minister reportedly added that almost all of Malaysia's blocs are together because Malaysia is a country with an open economy and is small as compared to its main trading partners, the United States and China. 

Earlier in April this year, prime minister Anwar Ibrahim said Malaysia’s political stability and clear economic policies have reportedly allowed it to gain world attention as a leading investment destination. 

The policies that helped investors see the country’s strengths include Digital Transformation, National Energy Transition Roadmap and New Industrial Master Plan 2030, added PM Anwar, according to The Star.

However, he also stressed the need to develop an educated workforce as Malaysia’s investments from companies such as Infineon and Nvidia to name a few, require 30,000 engineers which Malaysia is unable to fully fulfil at the present moment.

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