Malaysia among ‘Fabulous 5’ economies for FDI, says economist
Juwai IQI global chief economist Shan Saeed notes McKinsey has identified Johor, alongside Jakarta in Indonesia and Chonburi in Thailand, to be among Asia’s emerging data centre locations.
Malaysia has been recognized as one of the "Fabulous Five" economies in Southeast Asia that are expected to draw more foreign direct investment (FDI), according to economist Shan Saeed. Saeed highlighted the complementary strengths of Malaysia, Indonesia, Thailand, the Philippines, and Vietnam, with Malaysia's semiconductor and digital infrastructure sectors playing a key role.
Together, these five economies received US$85.3 billion (RM347.51 billion) in FDI in 2025, accounting for about 35% of the region's total FDI of US$243.9 billion. The investment trend shows that the region is shifting towards productive capacity, with manufacturing FDI in the region rising nearly 150% to US$44 billion in 2024. Shan emphasized the importance of energy security, regulatory credibility, and a skilled workforce in converting investment commitments into operational capacity and generating technology transfer, high-value employment, and stronger supply chains.
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