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Malaysia a stable anchor amid global economic realignment: DPM

theSun
9 Jun 2026, 08:23 pm
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Malaysia a stable anchor amid global economic realignment: DPM
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KUALA LUMPUR: Malaysia is positioning itself as a stable and open destination for investors seeking clarity and long-term resilience as the global economy navigates heightened uncertainty.


Deputy Prime Minister Datuk Seri Dr Ahmad Zahid Hamidi said the world is currently at what many describe as a defining moment for economic direction.


“Geopolitical tensions continue to reshape international relations, while global supply chains are being reconfigured in real time,” he said at the Invest Malaysia 2026 conference today.


“At the same time, rapid technological change is outpacing the ability of many institutions to adapt.”


Against this backdrop, Zahid said, investor priorities are shifting, with capital increasingly guided not only by returns but also by resilience, predictability, and confidence in governance and policy direction.


Malaysia, he added, views this moment not as a disruption to be managed but as an opening to be captured.


“In a period of global realignment, capital is expected to flow towards economies that are stable, open to trade and investment, structurally competitive, and clear in direction. That, policymakers suggest, is where Malaysia intends to position itself today.”


Zahid said investor confidence is rising, and Malaysia’s next phase is becoming more defined. “The task before us now is clear – to move from execution to Malaysia’s next leap.”


He added that the presence of investors and international stakeholders signals more than interest in Malaysia.


It reflects confidence in the country’s direction, belief in its long-term potential, and a shared commitment to building a stronger growth narrative.


Over the past year, Malaysia has sought to demonstrate that discipline and stability can translate into measurable economic performance. The economy grew by 5.2% in 2025, followed by 5.4% in the first quarter of this year, underscoring continued momentum despite global headwinds.


Zahid said investor sentiment towards Malaysia continues to strengthen, with many describing renewed interest in the country. “In many of my engagements with business leaders, investors and industry players, one message comes through very clearly – Malaysia is being looked at with renewed interest.”


He added that this is driven not only by geography but more importantly by Malaysia’s economic trajectory and forward-looking policy direction.


“That is the real story of Malaysia today,” Zahid said.


Malaysia is attracting capital into future-facing sectors such as advanced manufacturing, semiconductors, digital infrastructure, renewable energy and high-value services.


These sectors, he said, are key to creating quality jobs, strengthening domestic capabilities and moving the country further up regional and global value chains.
This structural shift reinforces Malaysia’s position in an increasingly fragmented global environment, he added.


“In a fragmented world, Malaysia remains connected. In a more uncertain world, Malaysia remains dependable. In an increasingly competitive global environment, Malaysia continues to position itself as an open and reliable destination for investment.”


Zahid said Malaysia remains open for business, with political stability continuing to support investor confidence.


However, he cautioned that attracting investment alone is not sufficient. Long-term growth depends on how effectively capital is mobilised, allocated, and converted into real economic value.


“This is where Malaysia’s capital market becomes central to our next leap. It connects ambition with opportunity,” he said.


The deputy prime minister noted that the capital market plays a key role in enabling entrepreneurs to scale, companies to innovate, and investors to participate more directly in growth.


In 2025, Malaysia’s capital market reached RM4.3 trillion – more than twice the size of gross domestic product. Funds raised rose to about RM187.7 billion, supported by strong listing activity, including around 60 initial public offerings.


The Islamic capital market expanded to about RM2.7 trillion, reinforcing Malaysia’s position in Islamic finance.


Beyond the figures, Zahid said, entrepreneurs and founders consistently highlight the need for wider market access, stronger investor trust, and improved access to growth capital.


“This is why our capital market is no longer just a financing platform. It is a national growth engine.”


Zahid said the system must support companies earlier in their growth journey, helping them move from local strength to regional scale and eventually global presence.


“This matters because the future economy will reward countries that move capital with purpose. It will reward trusted markets, well-governed companies, and economies that convert investment into productivity.


“Malaysia is building that ecosystem – a capital market that does not merely raise funds, but unlocks ambition and helps create national champions,” he added.

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