Malaysia primed for economic leapfrog, best chance since 1997: Liew

KUALA LUMPUR: Deputy Finance Minister Liew Chin Tong highlighted that Malaysia has the best chance since 1997 to experience economic growth, as the post-pandemic shift from efficiency to resilience alters global business and investment landscapes. Malaysia must seize this opportunity by addressing challenges, generating solutions, and transforming them into lucrative investment prospects.

The global transformation from efficiency to resilience offers strategic opportunities for Malaysia, as demonstrated by a six percent economic growth rate in the second quarter of 2026, resulting in a first-half growth of 5.7 percent. Key growth drivers include Malaysia's involvement in the global artificial intelligence boom, particularly in semiconductors, data centers, palm oil, oil and gas, tourism, and services sectors.

However, Malaysia faces several challenges and investment opportunities. To transition from a trading nation to a technology nation, Malaysia must enhance its role within the semiconductor ecosystem, encompassing semiconductor assembly and testing, advanced packaging, integrated circuit design, and equipment. Malaysia's strategic middle position in the global tech and tax landscape is crucial, particularly as geopolitical tensions divide the world.

Urban revitalization, shifting away from urban sprawl towards rebuilding inner cities, repurposing vacant buildings, and creating mixed-use urban spaces, also presents a significant investment opportunity. Decentralizing financial expertise beyond Kuala Lumpur could unlock regional investment opportunities in Penang, Kulim, Sarawak, and Johor for technology, semiconductors, energy, and cross-border supply chains.

Moreover, Malaysia is well-positioned to lead Asean's growth by utilizing its Islamic finance infrastructure and private capital networks to facilitate regional deals and investments. The country's relatively young population, with a median age of 31, offers a source of future economic growth, while the emergence of an aging society presents both challenges and investment opportunities in healthcare, elderly care, and public-private investments in services for the elderly.