File pic - Samsul Said/Bloomberg
KUALA LUMPUR: Bank Negara Malaysia (BNM) is cautiously optimistic that Malaysia will continue to see a steady flow of foreign direct investment (FDI) in 2026.
Deputy governor Marzunisham Omar said several factors are expected to support sustained FDI inflows into the country even as global uncertainties remain elevated.
"Trade agreements with the United States have provided greater certainty for Malaysia and this bodes well for investors looking to undertake new investments or expanding their investments in the country.
"Moreover, Malaysia's position in the global supply chain, especially in the electric and electronic (E&E) sector, semiconductor (continues to be strengthened), this is where there's a lot of demand and increase in production,” he said during a joint press conference in conjunction with the announcement of Malaysia’s third-quarter 2025 gross domestic product performance today.
He added that the government’s ongoing reform initiatives, efforts to create a conducive business ecosystem and measures to meet the demand for skilled labour also contribute to Malaysia’s attractiveness as a productive destination for FDI.
"Of course, the global environment is a factor that would influence the flow of FDI, not only in Malaysia but globally,” he said.
Meanwhile, BNM governor Datuk Seri Abdul Rasheed Ghaffour noted that the data centre industry has grown exponentially and it is one of our largest FDI contributors currently.
"There are signs that data centres have started to contribute to Malaysia’s information and communication technology (ICT) services exports.
"Between January and September 2025, data centre exports of services amounted to RM10.7 billion, significantly higher compared to the same period last year,” he said.
However, Abdul Rasheed stressed that the success goes beyond numbers alone but it is also about ensuring that these investments create long-term benefits for the nation.
He noted that the data centres demand significant energy and water resources, while generating relatively fewer direct employment, despite it being high-paying.
"The key to successfully maximising the spillovers from the data centres lies in effective strategies and policy execution, focusing on strengthening both forward and backward economic linkages to develop industries within the data centre ecosystem.
"This includes managing externalities from resource consumption and current account pressure through sustainable resource management and reducing import dependency and developing future ready talent equipped with industry-relevant skills,” he said. - Bernama
