Experts Say Stability Helps Build Investor Confidence In Malaysia
Investments continued their growth momentum in Q1 2025, recording a 9.7% increase, but there is still work to be done.
Cover image via In the wake of recent developments, public attention has once again shifted to internal political issues. However, experts have emphasised the importance of stability to build investor confidence.
"Stability builds trust and confidence, especially among investors and in terms of attracting foreign direct investment as well," said Professor Datuk Dr Sivamurugan Pandian.
"Without stability, it sends various signals to investors — as if the environment is uncertain and trust in the government is eroding, even if much of it is sentiment or perception," the Universiti Sains Malaysia political analyst added.
Image via Bernama
According to Sivamurugan, the true benchmark for a government lies in the end result — the tangible impact of its policies
He said that political rhetoric, when backed by implementation and solid results, will attract investors, even more so if the policy is investor-friendly.
"The government should ensure coordination between those who formulate policies and those who implement them, in order to effectively reach the targeted group — the investors," the analyst said.
Image via New Straits Times
One of the visible highlights for Malaysia in 2024 was hitting a new record with RM378.5 billion in approved investments
According to the Malaysian Investment Development Authority (MIDA), these investments are expected to generate over 207,000 new jobs across the country.
Finance Minister II Datuk Seri Amir Hamzah Azizan recently shared that the government is focused on attracting high-quality foreign investments to keep the economy growing. And things are looking steady so far, with total investments going up by 9.7% in the first quarter of 2025.
Image via MIDA
While Malaysia is not immune to the changes in the global economy, we can still prepare for it and remain resilient
"We cannot stop what happens outside the country… but what is important is for a nation to be able to face the challenges and come up with plans for its [economy's] revival," said Dr Ida Md Yasin, an economic analyst at Putra Business School.
According to her, economic stability is founded on a stable society. And while it's unrealistic to expect a challenge-free environment, what we can do is be prepared to face such challenges.
Economist Dr Geoffrey Williams said that the resilience of Malaysia's economy is dependent on national stability, which includes stable prices, strong growth, and a predictable policy environment.
"This allows companies to remain stable even if they have to adjust their business model or prices in line with global conditions to remain competitive. The domestic stability sees them through the challenges," he added.
Image via New Straits Times
