Citing RM1.7 trillion in approved investment from 2021 to 2025, MITI says Malaysia’s investment performance shows that political speculation is not the main driver for foreign investors.
kuala lumpur: Speculation on politics and the possible 16th general election (GE16) are not the main factors influencing the decisions of foreign investors, although political stability remains an important consideration in determining investment destinations.
In a written reply to the Dewan Rakyat today, the Ministry of Investment, Trade and Industry (MITI) said investment decisions are generally influenced by various fundamental economic and business factors which are more broad-based.
“Although Malaysia has gone through several government administration changes in the past, the continuity of investment policy implementation as well as the Madani government’s commitment to providing a transparent, consistent and investor-friendly investment environment through MITI and its agencies have strengthened the country’s position as one of the preferred investment destinations in the region,” the ministry said in a statement published on Parliament’s website.
MITI was responding to a question from Mohammed Azizi Abu Naeem (Gua Musang), who asked about the government’s plans to deal with negative perceptions among foreign investors due to politics and speculation over GE16.
The ministry highlighted that Malaysia’s approved investments across various economic sectors from 2021 to 2025 totaled RM1.7 trillion, comprising 30,301 projects that are expected to create 825,502 new job opportunities when implemented.
It reported that foreign investment of this was worth RM940.25 billion, accounting for 54.6% of all approved investments during the period.
The ministry also said investors no longer rely only on cost advantages, but also take into account other factors while determining investment destinations, including supply chain flexibility.
According to MITI, policy clarity and long-term sustainability of the industrial ecosystem are important indicators of investment sustainability in a country.
“In this context, Malaysia has a mature and integrated investment and industrial ecosystem that includes the electrical and electronics, semiconductor, medical device and halal industry sectors, supported by domestic supply chains and local engineering services.”
MITI said these strengths enable Malaysia to provide a comprehensive industrial ecosystem and wide market access within the region.
“In addition, the availability of strong industrial infrastructure and integration of domestic supply chains also enhances investors’ operational efficiency and reduces dependence on external supply chains that are more sensitive to global logistics risks and geopolitical uncertainties.”
