FDI may soften as global risks mount


Bank Muamalat Malaysia Bhd chief economist Mohd Afzanizam Abdul Rashid

PETALING JAYA: The country’s foreign direct investment (FDI) is anticipated to remain subdued in the second half of this year (2H25), as foreign investors adopt a cautious stance amid uncertainties surrounding the US tariff policy and escalating conflict in the Middle East.

While the baseline 10% tariff on exports to the United States remains in place, the fate of the proposed 24% reciprocal tariff on Malaysia will only be known by early next month.

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