Political Stability Key To Attracting Investors, Supporting Economic Growth - PM Anwar

PUTRAJAYA, Aug 18 (Bernama) -- Political stability is crucial to ensuring Malaysia remains a trusted investment destination, Prime Minister Datuk Seri Anwar Ibrahim said today.

Anwar, who is also Finance Minister, said investors needed confidence in a country’s stability before committing funds, besides assessing its economic strength and prospects.

“For me, political stability is very important for our country. People will not invest if the political situation is unstable,” he said at the closing of the Budget 2027 engagement session today. 

Anwar said this was why he had chosen to preserve political stability to support continued economic growth.

He acknowledged that balancing political and economic considerations sometimes required compromises, which could limit the government’s room to implement policies.

“That is why people criticise me when they see compromises. But I have a choice. Fight, and the economy declines. Compromise, and there will be constraints on the measures we can take. Those are the two choices.

“So I choose to maintain political stability and allow the economy to grow,” he said.

Anwar said stronger economic growth would give the government greater scope to increase spending and allocations to address public needs.

Malaysia’s economic fundamentals had put the government in a more comfortable position to consider additional allocations, he said, but every request must be assessed within the broader macroeconomic framework and the country’s fiscal constraints.

On the Budget 2027 dialogue, Anwar said the engagement session was important for gathering views from various stakeholders, including the business and trade sectors, chambers of commerce and banking institutions, which also play a role in strengthening confidence and economic capacity.

He added that while sectors such as artificial intelligence (AI) and digital technology were progressing, some industries and small and medium-sized enterprises continued to face challenges requiring government attention.

-- BERNAMA