Economic resilience bolsters US investor confidence in Malaysia
KUALA LUMPUR: Malaysia's economic growth of 4.4 per cent in the first quarter of 2025 (1Q 2025) is a positive indicator of resilience and broadly reflects the stable business environment experienced by members of the American Malaysian Chamber of Commerce (AmCham).
In a statement to Bernama, AmCham chief executive officer Datuk Siobhan Das said the US business community continues to view Malaysia as a strategic hub in the region, and this momentum reinforces a positive investment outlook.
She highlighted that the strong bilateral ties between Malaysia and the United States — built over more than five decades — remain vital, and the association anticipates continued US investment in Malaysia.
"We also anticipate Malaysian corporate investment into the US to grow on the back of the strong gross domestic product (GDP) numbers," she added.
Das noted that while GDP performance is one of many yardsticks used by US multinationals, their investment outlook is largely influenced by the ease of day-to-day operations.
"What drives operational and growth decisions for US multinationals is the day-to-day experience, ensuring their business activities are not hampered by administrative bureaucracy and outdated, frequently changing rules and regulations.
"Although economic indicators remain relevant, long-term American investments also depend on Malaysia's competitiveness within global value chains," she said.
She noted that flexibility and adaptability to business models are critical, especially when companies need to shift production capacity quickly. This requires assurance that this can be done efficiently, cost-effectively, and simplicity in compliance with local regulations.
Yesterday, Bank Negara Malaysia (BNM) announced that the Malaysian economy expanded by 4.4 per cent in 1Q 2025, driven by sustained household spending supported by favourable labour market conditions and government policies.
BNM Governor Datuk Seri Abdul Rasheed Ghaffour said the 1Q expansion was further supported by steady investment activity and continued export growth, particularly in the electrical and electronics sector and tourism.
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