Post-pandemic, it is therefore vital that Malaysia should attain a much higher rate of private investments by improving the domestic investment climate: enhancing a conducive ecosystem, ensuring macroeconomic stability, maintaining policies certainty, enhancing tax and cost competitiveness, as well as easing the regulatory and compliance costs.
WEAK private investment is a significant challenge for Malaysia as it will set back economic growth prospects by slowing the accumulation of capital, productivity growth and the expansion of exports.
Malaysia’s private investment growth had slowed markedly to 1.5% per annum in 2016-2021 from 12.1% per annum in 2011-2015.
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