— Bernama
KUALA LUMPUR: Malaysia's ASEAN chairmanship presents a pivotal opportunity to advance ASEAN's agenda, focusing on inclusive growth, sustainable development, and deeper regional collaboration, according to RHB Investment Bank Bhd.
It said Malaysia’s upcoming chairmanship will be key to navigating global uncertainties in the face of the potential intensification of global trade tensions.
"By prioritising economic resilience, innovation, and sustainable practices, Malaysia can lead and consolidate ASEAN’s position as a dynamic economic force and a pivotal player in shaping the future of Asia-Pacific economic integration,” the investment bank said in a note today.
As ASEAN progresses towards its vision of a unified and integrated community by 2030, it said that sustained commitment to these objectives will be crucial for navigating uncertainties and maximising opportunities in an increasingly interconnected world.
"While risks from the trade and geopolitical arenas persist (under the new US administration), Malaysia's neutral stance and diversified trade relationships position the country well to navigate these external challenges,” it said.
Therefore, RHB Investment Bank believes that Malaysia’s growth outlook remains positive, bolstered by its regional integration and economic resilience.
In the medium to longer term, it noted that Malaysia’s strategic location in Southeast Asia, its neutral stance in the geopolitical arena and its developed industrial base and infrastructure make it an attractive destination for businesses looking for alternatives to China.
"In particular, Malaysia’s manufacturing sector especially in electronics, mineral fuels and manufactured articles could see increased demand as companies relocate production out of China,” it said.
Additionally, the investment bank said Malaysia’s role as the world’s sixth-largest exporter of semiconductors positions it to benefit from greater Chinese-related investments and trade, particularly in high-tech sectors such as electronics and semiconductor manufacturing.
"This trend is further supported by a steady increase in foreign direct investment in Malaysia’s tech sector since 2021,” it added. - Bernama
