Malaysia Well-positioned To Navigate External Headwinds And Challenges This Year -- Abdul Wahid Omar

KUALA LUMPUR, Jan 21 (Bernama) -- Malaysia is well-positioned to navigate external headwinds and challenges of 2025 arising from Trump 2.0 policies and to achieve sustainable growth by maintaining a stable policy environment and capitalising on key growth sectors.

Bursa Malaysia chairman Tan Sri Abdul Wahid Omar said Malaysia’s economic strength lies in its robust domestic demand, strategic investments, and active role in regional cooperation.

"We must recognise that 2025 (global economic outlook) presents a dynamic and complex financial landscape. High interest rates in advanced economies and persistent geopolitical tensions are expected to continue influencing global capital flows. 

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"The rivalry between major powers, particularly the United States and China, remains a key source of uncertainty, impacting trade and investment decisions worldwide. Uncertain Trump 2.0 policies represent the biggest wildcard but equally significant will be how China will respond to Trump 2.0," he said in his opening address at the 2025 Malaysia Economic and Strategic Outlook Forum here, today.

Abdul Wahid said the US-China trade tension would result in higher approved and actual private investments, benefitting Malaysia.

For the first nine months of 2024, Malaysia’s approved private investment rose by 10.7 per cent to RM255 billion from RM230 billion in 2023; actual private investment increased by 13.6 per cent to RM242 billion from RM213 billion over the same period, he said.

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"With sustained domestic demand and a growing focus on high-value industries, Malaysia is indeed well-poised to attract further investments," he said.

Apart from strong and stable macroeconomic fundamentals, Abdul Wahid said one aspect of the Malaysian economy that may not have been emphasised enough is its sound financial system. 

"The Malaysian economy is well intermediated by a strong, liquid, well-capitalised, well-managed and well-supervised RM3.6 trillion banking system. And this is further supported by a diversified and well-functioning RM4.1 trillion capital market," he said.

He said enhancing market liquidity and broadening the range of financial products – particularly those linked to sustainability – will be critical in maintaining investor interest and boosting the overall market performance.

"Malaysia’s participation in regional initiatives such as the ASEAN Capital Markets Forum continues to support efforts to deepen regional financial integration. This integration will provide greater access to capital, facilitate cross-border investments, and enhance the resilience of our financial markets in the face of global volatility.

"Moreover, the growing emphasis on sustainable finance presents a significant opportunity for Malaysia," he said.

With the global push towards greener investments, Malaysia’s efforts to develop environmental, social and governance (ESG)-linked financial products will play a key role in attracting both domestic and international investors. 

He stressed that initiatives such as the introduction of green sukuk and sustainability-linked bonds underscore Malaysia's commitment to promoting responsible investment practices.

"In summary, while the global financial environment remains uncertain, Malaysia’s strong fundamentals, proactive policy measures, and commitment to sustainable finance position us well to capitalise on emerging opportunities and weather potential challenges.

"Moving forward, enhancing market liquidity and broadening the range of financial products – particularly those linked to sustainability – will be critical in maintaining investor interest and boosting the overall market performance," he added.

-- BERNAMA