Malaysia Must Emerge As A Credible Alternative As Investors Reassess Risk - Tengku Zafrul

KUALA LUMPUR, March 24 (Bernama) -- Malaysia must position itself as a credible and compelling alternative as global investors reassess risk amid the crisis in West Asia, said Malaysian Investment Development Authority (MIDA) chairman Tengku Datuk Seri Zafrul Abdul Aziz.

In a Facebook post today, he said the United States (US)-Iran conflict is contributing to higher energy prices, increased logistics costs and renewed inflationary pressures.

However, Tengku Zafrul said history shows that periods of disruption reorder the global economy, with capital shifting, supply chains realigning and investors reassessing risk -- creating strategic openings that Malaysia must be ready to seize.

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“Investors, sovereign wealth funds, and multinational firms are inherently cautious, and naturally gravitate towards jurisdictions that offer stability, policy clarity, and institutional credibility. In a more uncertain world, these qualities become even more valuable.

“Malaysia is well positioned in this regard, being politically stable, strategically located at the heart of ASEAN, deeply integrated into global trade networks, and capable of bridging regions through its strengths in Islamic finance, a trusted halal ecosystem, and long-standing ties with both East Asia and the Gulf,” he said. 

He said one area of clear opportunity lies in Gulf capital, noting that sovereign wealth funds in the region collectively managing about US$5 trillion. Amid current regional uncertainty, a portion of this capital is likely to seek diversification for both risk management and strategic allocation.

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“Malaysia is well placed to attract a share of these flows. As a Muslim-majority country with longstanding economic and cultural ties to the region, we are a familiar and credible partner,” Tengku Zafrul said.

He added that the sectors of interest align with national priorities, including data centres, renewable energy, power and grid infrastructure, logistics, industrial parks, healthcare, food security, halal goods and services, as well as advanced manufacturing.

Additionally, he said as Malaysia and the Gulf Cooperation Council (GCC) commenced free trade agreement (FTA) negotiations in May 2025, the timing could not have been more opportune.

“This FTA is significant not only from a trade perspective, but as a signal of deepening institutional alignment and long-term economic partnership supporting sustained investment mobilisation,” he said.

He emphasised that while Malaysia cannot control the course of global events, it can determine how it responds to them.

“If investors are reassessing risk, Malaysia must present itself as a credible and compelling alternative. If capital is seeking new destinations, we must offer a strong pipeline of bankable, execution-ready projects. If the world is becoming more fragmented, Malaysia must stand out as a place where stability, connectivity, and credibility converge,” he said.

He noted that this would require discipline and focus, with efficient approvals, coordinated investor facilitation and prioritisation of strategic sectors. He added that Malaysia must work harder to promote and position itself as a safe haven for global capital.

“Additionally, we must ensure that the benefits of investment are widely felt, through job creation, infrastructure development, and greater economic resilience for our people. All these must continue to be complemented by disciplined economic and fiscal reforms.

“Malaysia’s opportunity does not lie in the crisis itself, but in our ability and capacity to respond to a changing world. That is the essence of economic statecraft, not merely to withstand external shocks and survive, but to navigate them with clarity, purpose and resolve,” he said.

-- BERNAMA