NEW YORK, September 23 – Prime Minister Datuk Seri Anwar Ibrahim on Thursday assured global investors interested in entering Malaysia that the country is implementing necessary reforms and creating a better business environment for them. He also said that his government is working diligently to rectify past mistakes that have affected Malaysia’s socio-economic progress after decades of advancement.
“Regardless of the years of the Covid-19 pandemic, two decades before and after 1998 saw a significant decline in our average economic growth,” he said during his keynote address “Regaining Malaysia’s Lead in Asia” at the Invest Malaysia New York event organized by Bursa Malaysia here on Thursday. Also present were Minister of Investment, Trade, and Industry Tengku Datuk Seri Zafrul Tengku Abdul Aziz, Malaysian Ambassador to the United States Datuk Seri Nazri Aziz, Bursa Malaysia Bhd Chairman Tan Sri Abdul Wahid Omar, and Bank Negara Malaysia Governor Datuk Abdul Rasheed Ghaffour.
Furthermore, the Prime Minister said that for the past few years, the rate of investment has declined as a percentage of Gross Domestic Product (GDP), while new economic sources capable of driving growth have not been significant, as the economy continues to focus on domestic activities without fully utilizing opportunities in the global market. Therefore, after taking office as Prime Minister in November 2022, Anwar said what is clear is that his administration has no choice but to take restructuring action in Malaysia. “My priority is three things… strengthening governance, restructuring the economy, and paving the way for our future,” said Anwar, who previously held the position of Finance Minister from 1991 to 1998.
The Prime Minister made it clear that the transformation needed by Malaysia has been outlined in the Madani Economy: Empowering the People, a robust framework that systematically addresses structural deficiencies in the government’s fiscal policy and revenue driver, the country’s economic ecosystem, and the welfare of its people. “The Fiscal Responsibility Act (FRA), which will be presented to Parliament in October, outlines fiscal principles and regulations to enhance accountability and transparency in fiscal management,” he said.
This, said the Prime Minister, will be complemented by other fiscal frameworks such as the Medium-Term Fiscal Framework (MTFF) and the Medium-Term Revenue Strategy (MTRS). In addition, he stressed the importance of the National Energy Transition Roadmap and the New Industry Master Plan 2030 in advancing the country’s economy and harnessing new growth areas. Building on these developments, Anwar said that over the past few months, Malaysia has seen the initial impact of the government’s commitment to delivering change to its economy and people.
He also referred to the global semiconductor company based in Germany, Infineon Technologies, which has agreed to make an additional investment of €5 billion (US$5.4 billion) over the next five years involving the construction of the world’s largest 200mm silicon carbide power fabrication plant in Malaysia. “Of course, Tesla is here. Despite intense efforts by other regional countries, we have been quite swift in securing Tesla, along with SpaceX,” he said. Anwar said that companies like Tesla, Amazon, and Infineon are among the global industry leaders that have recently become part of this change and have placed their trust in Malaysia.
