MALAYSIA LIKELY SEE NET FOREIGN EQUITY INFLOW IN 2026 AMID RISING INVESTOR CONFIDENCE - ECONOMIST

KUALA LUMPUR, Jan 13 (Bernama) -- Malaysian equities markets are likely to see a net inflow of foreign investment this year amid heightened investor confidence, driven by improving market sentiment.

Economist Dr Anthony Dass said Malaysia has entered 2026 with positive growth, contained inflation and a sound financial system, positioning itself as a very favourable investment destination.

“If you look at the kind of policies that we have created, our fiscal balance is coming off fine, we are managing the fiscal balance well. 

“Looking at the equities market, yes we have seen a few years of net selling or net outflow, but there are indications this year that Malaysia may register a net inflow for the equity market. 

“The levels of confidence are slowly coming in,” he said during a presentation at the 'Malaysian Investment Development Authority (MIDA)-Media Appreciation High Tea and Networking Session' today.

Also present were MIDA chairman Tengku Datuk Seri Zafrul Abdul Aziz and MIDA chief executive officer Datuk Sikh Shamsul Ibrahim Sikh Abdul Majid.

The session was also attended by Malaysian National News Agency (Bernama) CEO Datin Paduka Nur-ul Afida Kamaludin and Bernama editor-in-chief Arul Rajoo Durar Raj.

According to Anthony, domestic investments now play a crucial role as the strategic anchor in realising the approved investment in the country amid a selective global environment.  

In the first nine months of 2025, Malaysia recorded RM285.2 billion in approved investments, with approximately 55 per cent from domestic sources, he noted.

“The question is no longer whether foreign capital will come automatically — but whether local firms are positioned to co-invest, scale and anchor supply chains. Countries that mobilise domestic capital credibly are perceived as less risky and more execution-ready,” he added.

Anthony said Malaysian firms are responding well and are repositioning themselves within the regional and global supply chains.

“We are seeing rising private capital expenditure and reinvestments across manufacturing, services and the digital economy. 

“This is not subcontracting, it is co-investment, capability upgrading and scale readiness - this is how domestic reinvestment translates into execution credibility,” he added. 

-- BERNAMA