Minister of Investment, Trade and Industry (MITI), Tengku Zafrul Aziz said Malaysia needs to maintain its role as a 'neutral' country to strengthen the ecosystem of the technology sector as an international investment destination.
He also said that Malaysia's open economy has the potential to establish good relations with all countries.
Malaysia and Singapore are two Southeast Asian countries that have long been involved in the semiconductor sector. Malaysia is over 50 years old and has a good ecosystem, almost complete and mature.
Additionally, Malaysia's strong investment inflows are reflected in the latest data showing approved investment of RM83.7 billion in various fields in the first quarter and marked a 13% increase from RM74.1 billion in the same period last year.
MITI expects gross domestic product to grow 5.8% in the second quarter of 2024 with the manufacturing sector growing by 4.7% as a result of stimulation by the electricity and electronics sector, especially semiconductors.
In terms of trade, Malaysia has signed 16 free trade agreements (FTAs), including multilateral and bilateral agreements such as the Comprehensive and Progressive Agreement for Trans-Pacific Partnership and the Comprehensive Regional Economic Partnership.
Among the FTAs involved is BRICS which is not an economic bloc but a group that discusses global south issues.
Malaysia is also with the United States in the Indo-Pacific Economic Framework. They are looking to start discussions with the European Union on the Malaysia-EU Free Trade Agreement.
