FISCAL DISCIPLINE, GROWTH OUTLOOK BOOST MALAYSIA'S APPEAL TO FOREIGN INVESTORS -- MOOMOO

KUALA LUMPUR, Jan 15 (Bernama) -- Malaysia’s steady fiscal trajectory and stable economic growth have positioned the country as an attractive destination for foreign investment, particularly in sectors such as infrastructure, financial services, and renewable energy, according to Moomoo chief market strategist for Southeast Asia Isaac Lim.

Malaysia’s resilience amid global challenges remains a key selling point, providing investors with confidence in the country’s ability to withstand external shocks while sustaining solid domestic growth, he said.

“Malaysia’s fiscal discipline continues to improve, with the fiscal deficit projected to decline to 3.5 per cent in 2026 from 3.8 per cent in 2025, in line with the 13th Malaysia Plan.

“This signals a commitment to fiscal responsibility, boosting investor confidence in the country’s economic stability,” he said in a statement today.

He said that diesel and RON95 subsidies are expected to help keep inflation in check, further supporting overall economic conditions.

On sectors to watch this year, Lim cited artificial intelligence (AI), semiconductors, and the data centre ecosystem as among them.

“In 2026, the investable AI story in Malaysia is less about hype and more about identifying who stands to generate earnings from the build-out. The clearest earnings visibility lies in higher value-added semiconductor segments and the broader data centre ecosystem, which benefits from committed capital expenditure — ranging from industrial infrastructure and power solutions to cooling systems, engineering services, and fibre connectivity,” he said.

He also advised prioritising companies with credible order books, strong margin discipline, and repeatable demand.

On the global front, Lim said the United States (US) Supreme Court’s ruling on the constitutionality of President Donald Trump’s reciprocal tariffs is a key development to monitor in 2026, as it could influence the US bond market and have ripple effects across global financial markets, including Malaysia.

“While the outcome remains uncertain, the decision has the potential to disrupt investor sentiment and global trade flows. For investors, this uncertainty presents risks, particularly for those with significant exposure to the US market.

“Should the US Treasury face a large-scale repayment, it could trigger market corrections, affect US bond yields, and influence the stability of other asset classes,” he added.

-- BERNAMA