Forbes article shows Malaysia is gaining international attention - Economists

KUALA LUMPUR - The recent article published by Forbes Magazine is compelling and deserves attention from the Malaysian and international press.

SPI Asset Management managing director Stephen Innes told Bernama it is refreshing to see a focus on Malaysia's political positives instead of political storm clouds written by the writer, Benjamin Laker.

Innes said beyond fiscal prudence and subsidies, the government's significant move into the semiconductor space stands out.

He said Malaysia, once known as the Silicon Valley of the East until Taiwan and South Korea took the lead in the chip industry, aims to reclaim its former glory.

"Establishing a new semiconductor task force underscores Malaysia's commitment to elevating its industry from back-end assembly to high-tech front-end manufacturing.

"With a well-established semiconductor ecosystem already in place, Malaysia is well-positioned to attract significant investments, especially in high-value sectors such as semiconductor manufacturing.

"Prime Minister Datuk Seri Anwar Ibrahim's strategic move underscores Malaysia's potential to become a semiconductor powerhouse in the region," he added.

Meanwhile, Bank Muamalat Malaysia Bhd chief economist Dr Mohd Afzanizam Abdul Rashid said the article suggested that the government reforms agenda has been noticed by foreign parties.

"This would help build the credibility of the present administration with respect to their selling pitch to the foreign investors and businesses to invest in Malaysia.

"The country certainly has what it takes for them to invest and thrive as the government reprioritise spending to boost the country’s productivity in the mid to long term," he said.

Mohd Afzanizam further said reforms are normally associated with unpopular measures and the present government is bold enough to take up the challenges while simultaneously ensuring that the reform agenda would be implemented at a measured pace.

"I believe that is what caught Forbes’ attention given the abundance of potential of the Malaysian economy," he added.

In the article dated July 10, 2024, Laker commended the measures taken by the prime minister in attracting investments in high-value sectors such as semiconductor and digital technology, and the steps taken to address inadequacies by introducing a series of new taxes while optimising cost amid persistent challenges. - BERNAMA