Malaysia’s Approved Investments In First Quarter Underscores Economic Resilience
By Durratul Ain Ahmad Fuad
KUALA LUMPUR, June 12 (Bernama) -Malaysia’s approved investments in the first quarter of 2025 (1Q 2025) underscored the country’s economic resilience and continued attractiveness as an investment destination, despite ongoing global uncertainties, economists said.
Malaysia recorded a total of RM89.8 billion approved investments in 1Q 2025, a steady 3.7 per cent year-on-year increase, with foreign investments contributing RM60.4 billion, and domestic investments RM29.4 billion.
International Islamic University Malaysia (IIUM) associate professor of economics, Dr Muhammad Irwan Ariffin, said the outcome also reflected Malaysia as a favourable destination for international investors, thanks to its strategic location, robust infrastructure, and investor-friendly policies.
“Foreign investors are particularly attracted to Malaysia’s skilled workforce, stable economic environment, and access to key markets in Asia, such as ASEAN and China. This heavy reliance on foreign investments underscores the confidence global investors have in Malaysia's long-term economic prospects, particularly in high-value sectors like electronics, digital services, and clean energy,” he told Bernama.
Muhammad Irwan said technology and digital economy, renewable energy, electronics and semiconductors, healthcare, logistics and e-commerce are expected to drive sustained investments in Malaysia in the coming quarters, despite global trade tensions.
Juwai IQI global chief economist Shan Saeed said Malaysia’s ability to secure nearly RM90 billion in approved investments in the first quarter amid a volatile global backdrop, marked by trade tensions and geopolitical uncertainty, underscored its enduring investor appeal. “The 3.7 per cent year-on-year growth in investments, with foreign direct investment accounting for the lion’s share, affirms the nation’s credibility as a stable, high-potential investment destination,” he added.
However, Shan said that headwinds such as US-China trade frictions and protectionist tendencies could strain supply chains and temper external demand. “As such, positioning Malaysia as a neutral, high-efficiency ASEAN hub will be a key driver to navigating global turbulence while preserving long-term growth momentum. Malaysia continues to remain on the global investor’s radar,” he added.
Bank Muamalat Malaysia Bhd chief economist Dr Mohd Afzanizam Abdul Rashid said the rise in approved investment suggests that the appetite for investment among private firms remains intact despite the US-China trade tensions. He highlighted that the establishment of the Johor-Singapore Special Economic Zone (JS-SEZ) in January 2025 has resulted in significant investments from Singapore, totalling RM28.3 billion.
“Johor recorded the highest share of approved investments, highlighting the potential of JS-SEZs to catalyse regional economic integration and stimulate spillovers, particularly in the construction and data centre industries,” he said.
However, he cautioned that lingering uncertainty over ongoing US tariff negotiations could weigh on business sentiment and delay future investment flows. “The outcome of these talks will be closely watched. The outlook for the second half of 2025 looks increasingly challenging as the world awaits the outcome of tariff negotiations,” he added.
-- BERNAMA