Tengku Zafrul: Foreign investors remain commited to Malaysia amid global uncertainty
KUALA LUMPUR: Foreign companies with existing investments in Malaysia continue to maintain their operations, with no signs of withdrawal despite ongoing global economic headwinds.
Minister of Investment, Trade and Industry, Datuk Seri Tengku Zafrul Tengku Abdul Aziz, said this reflects the strong confidence foreign investors have in Malaysia's robust and resilient investment ecosystem.
However, he noted that new investors are approaching with caution, adopting a "wait-and-see" stance amid rising geopolitical complexities.
"This is particularly due to the increasingly complex geopolitical uncertainties. So far, no existing investors have expressed intentions to leave Malaysia," he said during a press conference after the Regional Socialisation of the AEC Vision 2045 Asean Community Strategic Plan.
"They remain committed to their investments, and no cancellations have been announced. In our engagement sessions with investors, we found that various factors are being considered before investment decisions are made, particularly the geopolitical tensions between the United States and China."
Tengku Zafrul added that forecasting future investment flows has become increasingly difficult given the rapidly evolving global landscape.
On Wednesday, Malaysia reported approved investments totalling RM89.8 billion for the first quarter of 2025, marking a 3.7 per cent increase compared to the same period last year, despite challenging global economic conditions.
Of this amount, foreign investments (FI) contributed RM60.4 billion, or 67.3 per cent, while domestic investments (DI) accounted for RM29.4 billion, or 32.7 per cent.
Tengku Zafrul said the investment figures for the first quarter of 2025 were unexpected but a highly positive development.
"Typically, investment performance in the first quarter is somewhat slow, as most investment decisions are made towards the end of the year. But this time, the figures are very encouraging," he said.
"Nearly 70 per cent of the total investments were foreign direct investments (FDI), with the services sector, particularly the digital economy, emerging as the primary contributor," he explained.
He added that the country's gross domestic product (GDP) growth forecast for 2025 remains on track.
"We continue to see investment performance aligning with the country's GDP growth," he said.
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