Located in the center of Southeast Asia, with 35.9 million citizens and an average expected growth of 5% in 2025, Malaysia widens its profile as an investment center. According to the Malaysian Investment Development Authority (Midi), the multi-state federal monarchy recorded 378.5 billion RM (approximately 88.2 billion US dollars) in approved investment last year, the highest in the country’s history and marked a growth of 14.9% on annual investment. These figures partially reflect the increasingly tense relations between continental China, the regional giant and the United States, but also the heritage of the law of Malaysia, the educated and English-speaking workforce and the costs significantly lower than its smallest neighbor, Singapore. “Malaysia is rich in natural resources and has sophisticated infrastructure and advanced digital networks,” notes Dato ‘Anusha Santhirasthipam, founder of Akshiya Global Ventures. “Contrary to [Singapore]”We have first -rate land available for development. We also offer a dynamic and dynamic business sector and a highly qualified and technologically excellent human resources pool.”
Technology giants, including Microsoft and Alphabet (Google), have established a significant presence in peninsular Malaysia, taking advantage of a skilled workforce and its strategic location. BMW and Toyota also expanded production facilities, recognizing the growing Malaysia consumer market and direct access to the ASEAN market at 10 countries and 660 million.
In addition to a stable government and a history of policies adapted to businesses, Malaysia has also built an attractive assortment of tax incentives and benefits for family offices, foreign investors and expatriates, said Santhirasthipam.
Robust growth expectations
Despite the upheavals of the world trade launched by Washington, the officials hold a strong perspective for this year.
Speaking recently in Kuala Lumpur, Abdul Rasheed Ghaffour, governor of the Central Bank of Malaysia, reaffirmed bank growth forecasts in 2025 from 4.5% to 5.5%.
“Despite the growing risks of a potential world trade war, the climbing of geopolitical tensions and the increase in protectionism,” he said, “a sustained domestic demand – drawn by a solid investment activity from multi -year projects – will be the main engine of growth while a solid labor market and income boost policies continue to support household expenditure.”
Although increased global uncertainties – in particular the resurgence of protectionist policies – could present risks for broader economic prospects, some 6,700 projects in the key sectors will create more than 207,000 new jobs this year, Ghaffour forecasts, “strengthening the position of Malaysia as a primary investment destination”.
The foreign confidence of investors in Malaysia remains strong. Last month, domestic investment represents 55% of total investment (208.1 billion RM) and foreign investment the remaining 45% (RM170.4 billion).
Five key partners pave the way: the United States (32.8 billion RM), Germany (32.2 billion RM), China (28.2 billion RM), Singapore (RM27.3 billion) and Hong Kong (7.4 billion RM).
Climate for digital startups
JH Growth Partners, marketing and sale consultant, has established a strong presence in the region, with commercial operations in Singapore and Malaysia.
“Our company in Malaysia is focused on digital products, in particular in programmatic advertising, alongside a broader digital marketing services,” explains Daniël Heerkens, director partner. “We recognized a gap on the market – we went there.”
Several factors make Malaysia an attractive proposal, maintains Heekins: first, its proximity to Singapore. “You can be at Kuala Lumpur from Singapore with a 45 -minute flight of 45 minutes or a comfortable five -hour driver. This facilitates the easy management and movement of the staff.”
Second, the costs are considerably lower in Malaysia: generally, about 50% less than in Singapore. This offers a substantial advantage during the establishment of operations or the scale of a company.
Third, English is widely spoken, which makes communication and commercial transactions relatively transparent. Cultural similarities with Singapore also contribute to a more fluid transition for expatriates and businesses.
“Finally,” he notes, “we found that Malaysian customers are looking for more and more service providers with international experience beyond Malaysia. With our mixture of European expertise and in Asia-Pacific, we are well placed to offer both competitive prices and in-depth knowledge. ”
An additional boost came from the Malaysia Digital Economy Corporation (MDEC), the government agency which encourages and promotes the country’s technological sector.
“MDEC turned out to be invaluable, helping us in the online demand process,” said Heerkens. “We managed to obtain a tax franchise status for five years, which was a significant boost.
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