Malaysia retains foreign investors despite US-China tensions
KUALA LUMPUR: Despite geopolitical tensions between the US and China, foreign investors remain in Malaysia.
Investment, Trade and Industry Minister Tengku Datuk Seri Zafrul Abdul Aziz said Malaysia has not seen any cancellations of investment commitments so far.
"The ones already in Malaysia continue to stay, and those committed have not pulled out, but those yet to commit are reconsidering," he said during a press conference at the Regional Socialisation of the Asean Economic Community Strategic Plan 2026-2030 event on Thursday (June 12).
Tengku Zafrul said the ministry is pleased with the country's investment performance for the first quarter, announced on Wednesday.
The Malaysian Investment Development Authority (MIDA) reported that Malaysia secured RM89.8bil in approved investments for the first quarter of the financial year 2025 (1Q25), a steady 3.7% year-on-year increase despite a challenging global economic backdrop.
These investments, spread across 1,556 projects in manufacturing, services, and primary sectors, are set to generate over 33,300 new employment opportunities for Malaysians.
"Usually, the first quarter is softer as decisions are made towards the end. We were quite pleasantly surprised with this number," said Tengku Zafrul.
However, he cautioned that making investment forecasts for the future is not easy, as many companies are adopting a wait-and-see approach due to dynamic geopolitical issues.
He said Malaysia is currently maintaining its Gross Domestic Product (GDP) forecast for this year.
Commenting on trade negotiations between the US and China, he said Malaysia views the development positively.
"Things are showing progress in the right direction. We will have a positive spillover if these two countries can do more together," he said.
Tengku Zafrul stated that negotiations between Malaysia and the US have been ongoing virtually. He will visit the US on June 18 to meet with US Trade Representative Jamieson Greer.
He said the main goal is to reduce the 24% tariff, and for certain sectors important to both countries, Malaysia aims to negotiate further to lower the tariff rate to below the 10% floor tariff.
"It is not going to be easy. What is important is to show that Malaysia and the US's relationship in terms of trade and investment is complementary. We are not competing against the US," he said.
"A lot of things we do actually strengthen and complement US businesses both in the US and Malaysia. So it is a win-win relationship," he said.
He said the ministry is also enhancing enforcement to address trade diversion issues and ensure Malaysian exporters are considered.
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