Nation charts strong 3rd-quarter momentum as investment and trade surge into 2026

Business & Finance
14 Nov 2025 • 8:20 AM MYT
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THE Ministry of Investment, Trade and Industry’s (MITI) latest performance review sees Malaysia’s growth trajectory gathering pace in the third quarter of 2025 (3Q25) as the country secured RM24.5 billion in potential investments and RM33.6 billion in export opportunities, underlining its position as a preferred destination for high-value industries despite global economic uncertainty.

Presenting the Ministry of Investment, Trade and Industry’s Third Quarter 2025 Report Card at Menara MITI, Minister Tengku Zafrul Abdul Aziz said Malaysia remained firmly aligned with its industrial and trade transformation goals under the National Industrial Master Plan 2030 (NIMP 2030).

“Our performance this quarter reflects Malaysia’s position as a trusted investment destination and a proactive trading nation. The RM24.5 billion in potential investments and RM33.6 billion in export opportunities demonstrate investor confidence in Malaysia’s future,” he said.

As at September, RM24.49 billion in potential investments had been secured through trade and investment missions to key markets including the United States, China, India and Europe.

The Johor-Singapore Special Economic Zone (JS-SEZ) emerged as a leading driver of inflows, representing 66 per cent of Johor’s total RM56 billion in approved investments.

Digital investments continued to strengthen, totalling RM335.3 billion since 2021, with data centre-related projects accounting for RM235 billion.

Tengku Zafrul noted that MITI also recorded RM25.4 billion in approved green investments under the Green Investment Strategy, spanning renewable energy, circular economy initiatives and green mobility.

“Malaysia is building a future-ready industrial base anchored on digitalisation, sustainability, and inclusivity. MITI’s facilitation centres have successfully resolved over 37,000 investor cases, highlighting Malaysia’s commitment to ease of doing business,” he said.

A major milestone during the quarter was the signing of the Malaysia-US Agreement on Reciprocal Trade (ART), which safeguards RM325 billion in trade value and ensures market access stability for 1,711 tariff lines worth RM22 billion.

The arrangement is expected to particularly benefit electrical and electronics, aerospace and pharmaceutical industries.

Trade diversification also gathered pace, with Malaysian exports recording strong growth in African and BRICS markets such as Angola, Ethiopia and Egypt. Between January and September, exports in the electrical and electronics sector climbed 16.7 per cent year-on-year, while pharmaceutical exports rose 24.7 per cent.

Tengku Zafrul said these gains reflected the tangible impact of NIMP 2030.

He added that Malaysia’s manufacturing sector continued to strengthen, with median wages rising 23 per cent since 2021 to RM2,490. Manufacturing GDP value added increased to RM96.9 billion, up 3.7 per cent year-on-year.

Key milestones under NIMP 2030 included Perodua’s first electric vehicle, now 90 per cent complete and on track for a year-end 2025 launch; the Smart Factory programme, which surpassed its 2025 target with 26 factories recognised by the third quarter; and the National Semiconductor Strategy, which has secured RM64 billion in investments, trained 17,000 skilled workers and supported the growth of 13 Malaysian firms.

The chemical industry also recorded a sharp increase in investments.

“NIMP 2030 is no longer just a plan on paper. It is delivering real outcomes: higher wages, stronger industrial capabilities, and greener, smarter factories,” said Tengku Zafrul.

Malaysia’s services sector also registered strong momentum, with total services trade reaching RM497.4 billion in 2024, an increase of 14.6 per cent compared with 2023. Services export earnings grew 24.6 per cent to RM242.9 billion, while imports rose 6.5 per cent to RM254.5 billion.

The services trade deficit narrowed sharply to RM11.7 billion, supported by gains in tourism and business services.

Tengku Zafrul said Malaysia must continue strengthening high-potential service segments such as tourism, including health tourism, professional and consulting services, audiovisual production, construction and finance.

He added that digital investments created 105,486 job opportunities between 2021 and the first half of 2025, with data centre projects forming the bulk of commitments.

The JS-SEZ remained a key magnet for investment, accounting for 66.2 per cent of Johor’s RM56 billion approved investment.

As Asean Chair for 2025, Malaysia completed 12 of 18 Priority Economic Deliverables, including progress on the Asean Digital Economy Framework Agreement and ATIGA 3.0, reinforcing its leadership in regional economic integration.

“Through strategic diplomacy and industrial transformation, Malaysia is positioning itself as a resilient, neutral, and innovative player in global trade and technology.

MITI’s 3Q25 performance demonstrates an economy in forward motion, one that balances resilience with reform and ambition with pragmatism,” Tengku Zafrul said.

With record investments, a strengthening manufacturing base and deepening global linkages, Malaysia’s trade and industrial outlook remains firmly on a high-growth path as the nation heads into 2026. -- November 14, 2025