MITI says foreign investors prioritise economic fundamentals over GE16 speculation

KUALA LUMPUR, June 24 — Speculations on politics and the potential 16th General Election (GE16) are not the main factors influencing foreign investors’ decisions, although political stability remains an important consideration in determining investment destinations.

In a written reply to the Dewan Rakyat yesterday the Investment, Trade and Industry Ministry (MITI) said investment decisions are generally influenced by various fundamental economic and business factors that 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 climate 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 the statement published on Parliament’s website.

MITI was responding to a question from Mohd Azizi Abu Naim (Gua Musang) who asked about the government’s plans to tackle negative perceptions among foreign investors due to speculations on politics and GE16.

The ministry highlighted that Malaysia’s approved investments across various economic sectors from 2021 to 2025 totalled RM1.7 trillion, involving 30,301 projects that, when implemented, are expected to generate 825,502 new job opportunities.

Of this, it pointed out, foreign investments accounted for RM940.25 billion, representing 54.6 per cent of all approved investments during that period. 

The ministry also noted that investors no longer rely on just cost advantages but also take into account other factors when determining investment destinations, including supply chain resilience.

According to MITI, policy clarity and the long-term stability 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 encompassing the electrical and electronics, semiconductor, medical device, and halal industry sectors, supported by domestic supply chains and local engineering services,” it added.

MITI said these strengths enable Malaysia to offer a comprehensive industrial ecosystem and broader market access within the region.

“Furthermore, the availability of strong industrial infrastructure and the integration of domestic supply chains also enhance investors’ operational efficiency and reduce dependence on external supply chains that are more vulnerable to global logistical risks and geopolitical uncertainties,” it added. — Bernama