Kuala Lumpur: Sarawak’s green methanol projects and the Johor-Singapore Special Economic Zone (JS-SEZ) are projected to boost Malaysia’s economic growth and attract foreign investment over the next two to three years, according to Nomura Asset Management.
Leslie Yap, Country Head of Malaysia, said the initiative positions Malaysia as a destination for global investors looking for opportunities in Southeast Asia for the long term.
“They (JS-SEZ and Sarawak’s green methanol) are areas where they need capital and want to grow. Some of these projects are very good. There is going to be a good amount of investment in this, so hopefully it will be successful. The economy could benefit from this,” he said at Nomura Asset Management Malaysia’s Breakfast Conference 2025 today.
Yap said the current foreign selling and overall index pressure on the Malaysian equity market is short-term. He pointed out that short-term fund flows are influenced by concerns about the global economy, US interest rates and political factors such as the trade policies of the new Trump administration.
“When you talk about fund flows, which are more short-term in nature, global investors will say, ‘Let’s pull it back towards dollar-denominated assets. Let’s keep it there. Before taking any view on emerging markets, let’s make sure we see more certainty and clarity on what they – the US and Trump – are trying to do.
Yap said that given the relatively stable political situation, many regional or foreign investors would step back and consider Malaysia again. “Our team also believes and expects that these factors can continue – fundamentally political stability – to drive economic growth. After all, politics is politics. This is short-term.”
When it comes to supply chain diversification in electronics, Yap commented, “Yes, tariffs are in place in the near term, but we should continue to see more investment in the Malaysian sector from global investors.
For example, Infineon has quoted something in the region of €2 billion over 10 years (for Malaysia). They commit to it, and then walk out the next year? No, it’s a fixed asset investment, not like the stock market.”
Additionally, Yap said Malaysia, which is relatively small overall compared to other emerging markets, has performed well as it has established itself as a location for data centers. “We are also supported by the availability of liquidity in the domestic market, which means funds, pension funds and national funds are here to support,” he said.
Separately, Nomura Asset Management Malaysia Sdn Bhd, the Malaysian fund management arm of Nomura Holdings Inc, today launched the Japan Shariah Active Core Fund to offer investors Shariah-compliant exposure to Japan’s dynamic equity market.
Nomura Japan Shariah Active Core Fund is the first Malaysian unit trust fund that invests primarily in Shariah-compliant companies or derives its earnings from Japan. The fund is available for a minimum initial investment of RM1,000 or US$1,000 (RM4,500).
The fund’s active core strategy is designed to capture the essence of Japan’s growing economy without being tied to value or growth investments, ensuring that the portfolio remains balanced and flexible. This dual focus allows the fund to take advantage of opportunities in high-growth sectors while maintaining a foundation in value-oriented investing, providing an offering to investors seeking both stability and growth.
“As one of Japan’s largest asset managers, we have been managing active equities around the world for more than 60 years, starting in Japan. Atsushi Ichi, Managing Director of Nomura Islamic Asset Management, said: “We are thrilled to introduce the Japan Shariah Active Core Fund, which combines our extensive expertise in Japanese equities with the values of Shariah principles.
