In light of a growing dependence on foreign investments, Malaysia is being cautioned on potential repercussions. Data revealed that 78% of approved investments in the manufacturing sector in 2022 were foreign-sourced, an increase from 92% in 2021. As nations like Indonesia and Thailand intensify their competition, experts suggest Malaysia diversify its investment sources by promoting domestic enterprises. Economist Geoffrey Williams highlighted a challenging investment environment, with government-linked companies overshadowing private investments. Prime Minister Datuk Seri Anwar Ibrahim emphasised that domestic direct investments (DDIs) are paramount, signaling them as indicators of confidence in governmental policy. In 2022, DDIs accounted for 38.9% of total investments, rising to 47.5% in Q1 2023.
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