Malaysia, Asean must create tech MNCs to compete globally

New Straits Times

29-07-2025

KUALA LUMPUR: Malaysia must work towards developing more tech-driven companies capable of expanding into Asean-based multinational corporations (MNCs) and ultimately making a mark on the global stage.
Deputy Investment, Trade and Industry Minister Liew Chin Tong said one of the key challenges is overcoming an outdated mindset that assumes Malaysia and Asean lack technological capabilities and must rely solely on foreign innovations.
"If we invest sufficiently and if we channel the capital market into the direction of
investing in technologies and not into creating more real estate bubbles, we will see the rise of Asean technologies.
"We should also see ourselves as creating technologies for the bottom billions of the world's population," he said.
Liew said this in his keynote address at the Securities Industry Development Corporation (SIDC)–Capacity-building Alliance of Sustainable Investment (CASI) Sustainable and Responsible Investment (SRI) Conference here today.
He also highlighted that while there is frequent discussion about supporting small and medium enterprises (SMEs), in practice, foreign MNCs often receive more assistance.
He added that there remains a critical gap in efforts to grow homegrown, technology-based MNCs in Malaysia and across Asean.
"We are not doing enough to build Malaysian and Asean tech-based MNCs. The capital market may need to reimagine the future of Malaysian companies and their roles in the region.
"We need to see more local firms with technology capabilities growing into Asean MNCs and eventually gaining a global footprint," he said.
Looking ahead, he said Asean should aim to produce its own version of major global tech players such as Samsung, Huawei or TSMC in the next 20 years.
He added that the world is now in a different phase of global history, and this is the time to act with courage and vision.
Liew also said Malaysia must shape its capital market in ways that can influence not just the region but also the world through fresh and forward-looking ideas.
These ideas, he said, should help build sustainable economies and societies where people are prosperous and fulfilled, in line with the ideals of a Madani society.
Furthermore, Liew also emphasised that Malaysia and Asean must not remain bystanders but instead become active participants in shaping the future of the nation, the region, and the world.
He outlined several key challenges that must be addressed to ensure sustainable growth and resilience.
Firstly, he said Malaysia can no longer depend solely on the United States as the consumer of last resort and must diversify its export markets to reduce reliance on any single economy.
"Second, it is not enough to diversify if the rest of the world lacks the purchasing power to buy our products. We need stronger global demand.
"Third, to sustain demand, we must ensure people have the means to consume. If consumers do not exist, we must create them by making our own population wealthier and building a strong middle class. We must also hope for rising incomes across Asean.
"Fourth, all of this must happen while our societies are aging rapidly. Malaysians and the people of Asean must become prosperous before they grow old," he added.
Another pressing challenge is the growing threat of global populism driven by widening inequality.
Liew said when large segments of the population feel excluded or have little to lose, the result is often social and political instability.
This, he added, can be addressed by improving wages and narrowing the wealth gap to enable more people to join the middle class and become active consumers in the economy.