PETALING JAYA: Malaysia is set to sharpen its growth strategy by prioritising higher quality investment, stronger domestic capabilities and productivity gains as the country competes for capital, talent and technology, says RHB Research.
It expects the next phase of expansion to depend increasingly on how effectively the country converts investment momentum into high-value economic activity, stronger supply chains and better-paying jobs.
The research house said these priorities were highlighted at RHB Banking Group’s flagship RHB Progress Series 2026: Roots Run Wide, which brought together senior policymakers, industry and corporate leaders, and institutional investors to examine Malaysia’s economic priorities, investment landscape and long-term growth agenda.
The conference underscored that Malaysia’s competitiveness hinges more on the quality of investment and productivity than the volume of capital deployed.
The National Investment Aspirations framework prioritises economic complexity, high-value activities and well-paying jobs, with foreign investment expected to complement domestic businesses and deepen local supply chains.
RHB Banking Group group managing director and group chief executive officer Datuk Mohd Rashid Mohamad said future expansion would require closer collaboration across the economy, particularly as global competition for capital, talent and innovation intensifies.
“Key focus areas include strengthening Malaysia’s investment proposition, expanding digital infrastructure, enhancing strategic sector resilience (food security), and unlocking regional corridor opportunities.”
The forum also highlighted Johor, Sarawak and the Northern Corridor as important engines of Malaysia’s next growth phase. Johor continues to leverage the Johor-Singapore Special Economic Zone, while Sarawak draws on its power advantage and ambitions for an Asean power grid to support energy-intensive industries and data centre demand.
The Northern Corridor builds on Penang’s established electrical and electronics and semiconductor ecosystem to extend capabilities into Kedah, Perlis and Perak.
However, accelerating investment is also putting pressure on water, power and talent, making integrated ecosystems increasingly important for converting foreign direct investment commitments into actual economic activity.
Investment, Trade and Industry Ministier Datuk Seri Johari Abdul Ghani said: “The ultimate test of an investment is not how much capital it brings, but how much lasting capability it leaves behind.”
He highlighted the need to move beyond low-complexity activities through greater investment in domestic technology, research and development (R&D), skilled talent and integrated supply chains.
“Greater investment in R&D is required to move towards the frontier of technological advancement,” Johari said, adding that the next generation of investments should strengthen Malaysia’s economic capabilities rather than simply bring capital into the country.
Finance II Minister Datuk Seri Amir Hamzah Azizan said the government should make the foundations predictable, while investors should make the possibilities exciting.
He argued that long-term economic expansion can no longer rely on subsidies alone, with sustained momentum requiring robust institutions, private capital and compounding industrial capability.
