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THE Malaysia Economic Forum (FEM 2026) will play a central role in shaping Malaysia’s economic direction by converting high-level dialogue into actionable policy priorities, Economy Minister Datuk Seri Akmal Nasrullah Mohd Nasir said on Thursday.
Speaking at the opening of FEM 2026 at the Kuala Lumpur Convention Centre, Akmal said the forum goes beyond being an annual event, serving instead as a national mechanism for decision-making, policy refinement and delivery.
He said FEM brings together policymakers, investors, businesses and the wider public to collectively define the country’s economic trajectory, assess policy outcomes and confront emerging challenges.
FEM 2026, themed “Accelerating Growth, Advancing Malaysia”, is anchored on the MADANI economic framework, which prioritises inclusivity, sustainability, innovation and people’s well-being, rather than relying solely on traditional growth indicators such as gross domestic product.
At the beginning of the year, he said, the forum provides a strategic moment to reflect on past performance, evaluate current conditions and set priorities for Malaysia’s future development.
Akmal said interest in the forum remains strong, with nearly 5,000 registrations recorded. Participants include institutional investors managing a combined US$7.3 trillion in assets under management and corporations with a total market capitalisation of US$226 billion, underscoring sustained investor confidence in Malaysia.
Looking back at FEM 2025, he said discussions highlighted the pressures Malaysia faced from global economic uncertainty, geopolitical tensions, supply chain disruptions and the need for ASEAN to strengthen engagement with the Global South.
Against this backdrop, Akmal said the government has aligned the Thirteenth Malaysia Plan, or RMK13, with the MADANI Economy framework to guide structural reforms aimed at overcoming the middle-income trap, enhancing competitiveness and ensuring growth benefits all Malaysians.
He said major nation-building initiatives form the backbone of this strategy, including the Johor–Singapore Special Economic Zone, or JS-SEZ, which is intended to deepen the business ecosystem and attract higher-value investments.
The government, he added, is also intensifying efforts to develop “high growth high value (HGHV) industries and high-impact strategic sectors” as a core pillar of reform, moving Malaysia up the value chain, building domestic champions and creating high-income jobs through “Made by Malaysia” products and services.
On the JS-SEZ, Akmal said investment performance has surpassed initial expectations. Citing the Malaysian Investment Development Authority’s third-quarter 2025 Investment Performance Report, he said the zone attracted RM68 billion in approved investments during the first nine months of 2025, accounting for 75 percent of Johor’s total approved investments over the same period.
He said the full-year approved investment figure for 2025 will be announced in March 2026, adding that the results reinforce confidence in the JS-SEZ as a key engine for high-value investment, stronger cross-border value chains and better-quality employment.
Akmal said the JS-SEZ Investment Blueprint and Masterplan will be unveiled by the end of March to guide development, enhance coordination among stakeholders and provide clearer direction for investors on priority sectors, infrastructure rollout and implementation pathways.
Beyond the JS-SEZ, he said Malaysia has introduced a series of national initiatives to strengthen long-term competitiveness, including the New Industrial Master Plan 2030, the National Semiconductor Strategy and the National Energy Transition Roadmap.
Targeted assistance measures such as STR and SARA cash aid, BUDI 95 petrol subsidy reform and broader price stabilisation initiatives, he said, have helped ease cost-of-living pressures faced by the public.
Akmal said talent development, education, inclusivity, energy transition and ASEAN cooperation remain central to the country’s economic strategy. He pointed to efforts to strengthen the workforce through STEM education, the establishment of the National AI Office and innovation support programmes such as MyStartup and the National Technology and Innovation Sandbox.
“These strategies and programmes went beyond numbers,” he said, adding that they are designed to build a resilient, inclusive and innovation-driven economy that empowers the rakyat.
Turning to recent economic performance, Akmal said advance estimates indicate Malaysia’s economy grew by 4.9 percent in 2025, driven by resilient services, manufacturing and construction sectors. He said fiscal discipline remains intact, with the budget deficit targeted to narrow to about 3.8 percent of GDP in 2025, down from 4.1 percent in 2024.
Total approved investments for the first nine months of 2025 reached RM285 billion, he added, signalling strong confidence among both domestic and foreign investors.
Despite these gains, Akmal cautioned that uncertainties persist, including inflationary pressures, interest rate movements, geopolitical tensions and the rapid pace of technological change. He noted that artificial intelligence and automation are reshaping industries, while regional peers are accelerating reforms to attract talent and investment.
In response, he said FEM 2026 will focus on strategic priorities that will shape Malaysia’s economy over the coming years.
These include leveraging AI and technology to raise productivity, managing the energy transition while keeping costs affordable and reliable, reforming health and housing systems to improve access and quality, strengthening trade and investment competitiveness, and preparing a future-ready workforce amid demographic shifts.
He said insights and recommendations from the forum will feed directly into RMK13, ensuring that evidence-based discussions translate into national planning and policy execution.
Akmal also highlighted the role of the MyRMK system under the 13th Malaysia Plan, which enables real-time, outcome-based monitoring of projects with clear ownership, timelines, budgets and key performance indicators, positioning FEM as a national “report card” on policy implementation.
“These are not abstract policy questions; they affect daily life, jobs, wages, cost of living, homes, health and opportunities for the next generation,” he said.
He called on participants to engage fully, challenge assumptions and collaborate across sectors to ensure the forum delivers tangible outcomes.
Akmal also expressed appreciation to the forum’s partners, naming Maybank and Bursa Malaysia as principal strategic partners, HSBC Bank as a strategic partner, and the Asian Infrastructure Investment Bank and MBSB as supporting partners.
He concluded by voicing hope that FEM 2026 would help chart a clear path towards an inclusive, innovative and sustainable economy, in line with the MADANI vision. - February 5, 2026
