Malaysia needs to stay neutral to remain investment destination: official

Malaysia's economy is open and has established cooperative relations with all countries, so it needs to continue playing its role as a “neutral” country with a strong ecosystem in the technology sector to ensure the country remains an investment destination, an official has said.

Malaysian Minister of Investment, Trade and Industry Zafrul Abdul Aziz said in a TV show on Wednesday that Southeast Asia is neutral, has good demographics, and is a growing, stable, and peaceful economy.

Malaysia and Singapore have been involved in the semiconductor sector for a long time. Malaysia has a good ecosystem, almost complete and mature.

The country recorded approved investments of MYR83.7 billion ($18.9 billion) in various fields in the first quarter, representing an increase of 13% from MYR74.1 billion in the same period last year, he pointed out.

He noted that it expects GDP to grow 5.8% in the second quarter of 2024, with the manufacturing sector growing 4.7%, boosted by the electrical and electronics sector, especially semiconductors.

In terms of trade, Malaysia has 16 free trade agreements, multilateral and bilateral, including the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP) and the Regional Comprehensive Economic Partnership (RCEP), the official added.