GOVT CONTINUES TO INTRODUCE INVESTMENT POLICY REFORMS, STRENGTHENS MALAYSIA'S GLOBAL COMPETITIVENESS

KUALA LUMPUR, Oct 16 (Bernama) -- The government will continue to introduce progressive reforms in investment and trade policies to strengthen Malaysia’s global competitiveness, said the Ministry of Investment, Trade and Industry (MITI) today.

The ministry said various approaches and strategies are being implemented through a Whole-of-Government approach via the ministry and its agencies such as the Malaysian Investment Development Authority (MIDA) and the Malaysia External Trade Development Corporation (MATRADE) in an effort to revive export competitiveness and boost investor confidence.

Among the initiatives are the introduction of the New Investment Incentive Framework and strengthening supply chain ecosystem between local companies and multinational corporations as well as large domestic companies, it said.

As a result, Malaysia recorded an encouraging foreign direct investment (FDI) performance in the first half of 2025, with a net inflow of RM17.2 billion, which is higher than RM14.8 billion recorded in the first half of 2024.

“Apart from that, Malaysia’s advantages, particularly in terms of strong economic fundamentals, strategic (geographical) position, and broad trade network, have enhanced the country’s resilience in facing global and regional crises,” said the ministry in a written reply in the Dewan Rakyat today.

MITI further added that this solid foundation has enabled Malaysia to continue recording a surplus in its current account of the balance of payments.

“In the first half of 2025, Malaysia recorded a current account surplus of RM17 billion, higher than the RM13 billion recorded in the same period in 2024.

“(However) the current account surplus in the second quarter of 2025 fell RM0.3 billion due to higher imports of capital and intermediate goods. Nevertheless, the import of these components are expected to contribute to the spillover effects on Malaysia’s exports in the short and medium term," MITI said.

The ministry was responding to a question from Tan Sri Muhyiddin Yassin (PN–Pagoh) regarding the government's efforts to restore export competitiveness and investor confidence in the context of current account surplus and FDI performance.

-- BERNAMA