Kuala Lumpur (VNA) – Malaysia has approved a record 109 billion USD in investments for 2025, an 11% increase from the previous year, significantly surpassing its initial target of 97 billion USD.
According to United Overseas Bank (UOB), Malaysia's investment outlook for the next 12 to 24 months remains positive despite global headwinds and energy volatility linked to the Middle East conflict. Investor confidence is bolstered by diversification across high-growth sectors, including electrical and electronics, electric vehicles, and digital services.
UOB said Malaysia's 2025 performance was driven by strong growth across all sectors, including services, manufacturing, and agriculture, as well as foreign investment. Singapore is the largest investor with nearly 15 billion USD, followed by China, the United States, and Japan.
The bank highlighted that Malaysia's investment profile is shifting toward “higher-quality” projects in digital infrastructure, chemicals, and next-generation mobility.
This transition is supported by the New Incentive Framework (NIF), launched on March 1, alongside modernised industrial laws and new climate-related statutes. The “trifecta” of these policies aims to address long-standing investor concerns regarding policy clarity and ESG certainty.
In addition, 17 Malaysian ministries are actively working to address the shortage of skilled labour.
Despite the positive outlook, UOB warned that regional competition remains a key constraint. Future growth will depend on the Malaysian government's ability to implement infrastructure upgrades for AI-era data centres, manage water and energy diversification, and ensure effective project delivery at the state level./.
