Confidence in government key to future investments for Malaysia

KUALA LUMPUR: The key to maintaining steady economic growth is to be able to provide confidence to domestic as well as foreign direct investors, said Juwai IQI global chief economist Shan Saeed.

He said this was proven when Malaysia's total trade saw a double-digit growth in September 2022, when it expanded by 31.4 per cent, reaching RM257 billion.

Exports increase by 30 per cent to RM144.3 billion year-on-year and Malaysia's trade balance continued to record a surplus, increasing 20 per cent to RM31.7 billion.

"This clearly shows that the government has been able to maintain macroeconomic stability and it has provided local investors the economic confidence," he told Bernama.

He noted that last year technology giant Intel Corporation announced a huge investment of US$7.5 billion (RM30 billion) in ASEAN, inclusive of Malaysia.

"This sends a positive signal not only to the ASEAN region but also global investors that Malaysia is on the move," said Shan.

Given the healthy growth in the first nine months of 2022 (9M 2022), the full year 2022 growth is expected to exceed the seven per cent projected earlier.

With the challenging global headwinds, Shan said the country needs a quality leader who is action-oriented, well-experienced and understands the economy.

However, Malaysia is still able to have consistently maintained its economic policy, which led to strong private consumption and improved labour market.

He said as an international property technology investor in Malaysia and a believer in the free market, the company saw that the government had provided the policy framework and let the private sector run the economy.

"In the future, we wish to see this consistency continuing.

"However, this will only happen when the country is led by experienced people who understand the economy at a macro level.

"To have macroeconomic stability, it also means we need to have political stability, economic stability and financial stability," he said.

"On this note, caretaker prime minister Datuk Seri Ismail Sabri Yaakob is a good choice and we hope he can continue to deliver and make a positive impact on the people," he said.

On Oct 20, 2022, the Election Commission (EC) announced that polling for the 15th General Election would be held on Nov 19, while early voting falls on Nov 15.

All 222 seats in parliament would be contested.

-- BERNAMA