BUSINESS

MALAYSIA'S INVESTMENT OUTLOOK SEEN PROMISING UNDER TRUMP 2.0 PRESIDENCY

27/11/2024 03:47 PM

KUALA LUMPUR, Nov 27 (Bernama) – Malaysia is seen leveraging its role as ASEAN Chair in 2025 to maintain its economic stability and position itself as a key regional player amid global economic uncertainties stemming from US President-elect Donald Trump’s policies.

With fiscal consolidation and a stable policy environment, Malaysia presents a promising outlook for investors, said Christy Tan, an investment strategist at Franklin Templeton Institute, as she assessed the implications of Trump’s second presidency on Asia’s markets.

Tan said this during a media webinar titled “2025 Investment Outlook: Perspectives from Asia and Beyond” organised by Franklin Templeton today.

While yet to fully recover, she noted that the ringgit has shown signs of stabilisation, providing confidence for a more optimistic trajectory for Malaysian assets in the coming year.

“Malaysia’s outlook is stable, with fiscal consolidation a key investor guardrail. Bank Negara’s predictable policy stance further adds to this stability, reducing the risk of surprises,” she added.

As ASEAN Chair in 2025, Malaysia is expected to play a pivotal role in fostering regional economic integration, potentially enhancing investor sentiment and market performance, particularly in sectors tied to trade and diplomacy.

Tan highlighted that Malaysia’s neutral stance in the escalating US-China tensions could also be an advantage. “This neutrality positions the country as a potential mediator in regional and global trade discussions, which could bolster its diplomatic and economic standing. The country’s focus on key industries, particularly technology and artificial intelligence (AI), further supports its long-term growth narrative,” she said.

She noted that Malaysia’s advancements in technology, such as data centres and AI-driven initiatives, align well with global trends, which would position the country as a competitive player in the broader technological ecosystem.

The ASEAN chairmanship also provides an avenue for Malaysia to strengthen its trade partnerships and regional influence, Tan said.

“As the global trade landscape becomes more complex with potential tariffs and trade barriers under Trump’s presidency, Malaysia’s leadership in ASEAN could help drive collaborative solutions, benefiting its economy and the region’s,” she added.

-- BERNAMA

 

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