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Malaysia: moving with the times

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by Veronique Erb May 1, 2024

Malaysia’s national fruit, the durian, has been celebrated for its cultural significance for thousands of years, yet the country is also looking ahead to the future.

I hadn’t been to Kuala Lumpur for a long time, but my recent trip to this vibrant, dynamic city was enlightening. In my piece, I share my observations on:

  • ‘Tiger Cub’ Malaysia: Asia’s more high-tech and developed countries, such as Singapore and Taiwan, have long been in the spotlight but Malaysia’s economy is growing and its outlook is evolving.
  • A new political era: Anwar Ibrahim assumed the post of Prime Minister in 2022, after a long period of corruption and political turbulence. His new government has brought much-needed political stability, with foreign direct investment also returning.
  • Geopolitical developments: as the world pivots away from China as a manufacturing hub, Malaysia is benefitting from friendshoring, nearshoring and ‘China+1’, with multinational corporations relocating their assembly and tech semiconductor supply chains there.
  • The role of SMEs: small and medium-sized enterprises are the fastest growing segment of the market and are playing a crucial role in the country’s economy. I was encouraged by up to a 100% hit rate in meeting women in C-suite roles.

Overall, being back in Malaysia was an eye opener. It is clearly a country that is changing and moving with the times. With capital flows picking up, there will be a bright future for dynamic and innovative businesses, and I will be watching the investment landscape with interest.

Additional Resources:

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