Reforms And Innovation Boost Investors' Confidence In Malaysia -- Tengku Zafrul

SINGAPORE, Oct 2 (Bernama) -- Investor confidence is clearly returning to Malaysia as a result of the government’s commitment to reform, cooperate, innovate, and build a stronger, more sophisticated and inclusive economy, said Investment, Trade and Industry Minister Tengku Datuk Seri Zafrul Abdul Aziz.

He said today’s Malaysia is clearly stronger and more resilient, and has risen sharply in global competitiveness rankings.

“Our re-entry into the radar of global investors is the result of deliberate curation, not a coincidence. But Malaysia will not rest on past laurels.

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“Our exports are diversifying, with green technologies, medical devices, and digital services expanding rapidly as new pillars of growth,” he said in his opening remarks at the Milken Institute’s Asia Summit 2025 here today.

Tengku Zafrul said in navigating today’s increasingly complex global landscape, Malaysia is adopting a three-pronged approach through industrial reform, innovation and economic complexity, and the green strategy.

The minister noted that Malaysia’s industrial reform efforts are geared towards retooling the country’s industries for the challenges of tomorrow.

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By driving industrial upgrading, digitalisation, and sustainability, Malaysia is raising its manufacturing sophistication, accelerating technology adoption, and strengthening small and medium enterprises (SMEs), he said.

“Long a trusted hub in assembly and testing, Malaysia is now proactively moving up the innovation and economic complexity value chain, such as design, advanced packaging, and R&D for semiconductors,” he said.

For investors, the disciplined implementation of Malaysia’s industrial reforms signals the country’s determination to move up the value chain.

Additionally, he said Malaysia’s green investment strategy (GIS) ensures the country is well-positioned to lead in renewable energy, carbon services, and sustainable finance.

Tengku Zafrul said all these national strategies have been complemented by cross-border initiatives such as the Johor-Singapore Special Economic Zone (JS-SEZ), which now serves as a testbed for how ASEAN can integrate supply chains, strengthen resilience, and create high-value opportunities across borders.

Under Malaysia’s ASEAN chairmanship this year, the regional bloc is on track to deliver most of the 18 priority economic deliverables outlined at the ASEAN Economic Ministers meeting last week.

He said ASEAN continues to shine — a rare, bright spot — in the proverbial darkness of global headwinds with growth projected at 4.2 per cent this year against 2.8 per cent globally.

Last year, trade in goods grew by nearly nine per cent to US$3.8 trillion, while services trade expanded by 12  per cent, and foreign direct investments (FDI) rose by 8.5  per cent, compared to global FDI, which reduced by 11 per cent. 

Tengku Zafrul said ASEAN’s role as a bridge in a strife-ridden world cannot be overstated, and it remains one of the few middle-power platforms where the United States, China, India, the Gulf Cooperation Council (GCC), and Europe can still sit together.

He said Malaysia is determined to keep ASEAN open, inclusive, and central as the best way forward towards peace and prosperity for all.

“Under Malaysia’s chairmanship, we make no apologies for our fierce neutrality or prioritising the ASEAN Way,” he added.

-- BERNAMA