Malaysia may struggle to surpass its record 431.1 billion ringgit in investment approvals seen in 2025, with growth expected to moderate this year, The Star reported Monday, citing UOB (Malaysia).
The bank attributed the softer outlook to geopolitical tensions, energy price swings, and ongoing cost pressures that could dampen investor sentiment.
It expects total approved investments in 2026 to trend closer to the three-year average of about 382 billion ringgit, though AI-led demand and supply chain diversification into ASEAN are likely to provide support, according to the report.
In the first quarter, Malaysia recorded 92.8 billion ringgit in approved investments, slightly below 93 billion ringgit a year earlier. Foreign investments made up 60.5% of total approvals, led by Japan, China, the US, Singapore, and Thailand, while services remained the dominant sector, the news outlet said.
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