KUALA LUMPUR – Foreign investors remain in Malaysia despite the geopolitical tensions between the US and China as the country has not seen any cancellation of investment commitments so far, says Investment, Trade and Industry Minister Tengku Datuk Seri Zafrul Abdul Aziz.
However, he also pointed out that the foreign investors are taking a cautious approach towards new investments in the county due to global economic uncertainties, with newcomers showing hesitation, which poses a challenge for Malaysia to attract new investors.
Tengku Zafrul also cautioned that making investment forecasts for the future is not easy, as many firms are adopting a wait-and-see approach due to dynamic geopolitical issues.
“The ones already in Malaysia continue to stay, and those committed have not pulled out, but those yet to commit are reconsidering,” The Star quoted him as saying during a press conference at the Regional Socialisation of the Asean Economic Community Strategic Plan 2026-2030 event today.
He also said that the Ministry of Trade, Investment and Industry (Miti) is pleased with the country’s investment performance for the first quarter, which was announced today – where Malaysian Investment Development Authority (MIDA) reported that the country has secured RM89.8bil in approved investments for the first quarter of the financial year 2025 (1Q25), which is a steady 3.7% year-on-year increase despite a challenging global economic backdrop.
These investments, spread across 1,556 projects in manufacturing, services, and primary sectors, are set to generate over 33,300 new employment opportunities for Malaysians.
“Usually, the first quarter is softer as decisions are made towards the end. We were quite pleasantly surprised with this number,” added Tengku Zafrul. He said Malaysia is currently maintaining its Gross Domestic Product (GDP) forecast for this year.
Tengku Zafrul will travel to Washington on June 18 to continue discussions with the US on tariffs imposed on Malaysian goods. He added that he is scheduled to meet US Trade Representative (USTR) Jamieson Greer, US administration officials, and several investors during the visit.
The upcoming trip follows a high-level delegation he led to Washington on 24 April, where discussions were held with US Secretary of Commerce Howard Lutnick and Greer. During that meeting, Tengku Zafrul underscored the importance of ongoing dialogue and reaffirmed Malaysia’s commitment to finding constructive solutions to US concerns. – June 12, 2025
Earlier today, Anadolu Ajansi reported US Treasury Secretary Scott Bessent as saying yesterday that the Trump administration is “highly likely” to delay tariffs on countries engaged in “good faith” trade negotiations with the country. – June 12, 2025