ASEAN Summit could unlock RM300 billion in FDIs for Malaysia - Juwai IQI

LocalBusiness & Finance
22 May 2025 • 1:38 PM MYT
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ASEAN Summit could unlock RM300 billion in FDIs for Malaysia - Juwai IQI

THE ASEAN Summit in Kuala Lumpur could pave the way for up to RM300 billion in foreign direct investment (FDI) into Malaysia over the next five years, driven by deeper regional integration and trade facilitation, according to global real estate technology group Juwai IQI.

In a statement today, its co-founder and group chief executive officer Kashif Ansari (pic) said the summit arrives at a time when ASEAN must navigate “a complicated world” shaped by strategic rivalries, technological disruption, and the rapid rise of artificial intelligence (AI).

“The summit could boost Malaysia’s economy through regional integration, ASEAN unity in global trade, and foreign direct investment. Changes in these three areas could mean hundreds of billions of ringgit in additional trade and capital over the coming years,” said Kashif.

He cited the Johor-Singapore Special Economic Zone (JS-SEZ) as a flagship example of integration, projecting that it alone could add RM110.9 billion annually to Malaysia’s economy by 2030.

A more cohesive ASEAN bloc, he added, could see Malaysia’s total trade volume rise to RM3.87 trillion by 2027, with annual exports potentially reaching RM2.13 trillion by 2030.

“While the agreements coming out of the summit could have us shipping more goods out by 2030, we will also be receiving more inbound FDI, with that money going into local innovation, infrastructure, employment, and property,” said Kashif.

According to IQI’s projections, approximately RM15 billion—or five per cent—of the anticipated FDI may flow into Malaysia’s real estate sector, supporting new developments including industrial parks, logistics hubs, commercial centres, and housing.

“We have estimated this five per cent ratio between FDI and real estate based on typical patterns seen across the region. The real number could be lower, or much higher,” he said.

He noted that global players have already invested heavily in facilities such as data centres and electric vehicle hubs, which in turn generate high-quality demand for industrial property, with spillover effects on the housing, retail and office segments.

“This ASEAN Summit is a platform for improving Malaysia’s future. If regional leaders can agree to deepen intra-ASEAN trade, harmonise regulations, and reduce trade barriers, Malaysia and all our partner nations will benefit,” Kashif said.

The 2025 ASEAN Summit will be held on 26 and 27 May at the Kuala Lumpur Convention Centre, alongside the second ASEAN–Gulf Cooperation Council (GCC) Summit and the inaugural ASEAN–GCC–China Summit.

This year marks Malaysia’s fifth chairmanship of ASEAN, having previously held the position in 1977, 1997, 2005 and 2015. - May 22, 2025