Malaysia is poised for robust economic growth, said to have the potential to outpace other Asian markets if Donald Trump wins a second term as President of the United States (US), according to global financial services company Nomura.
The ongoing shift in the global supply chain, particularly driven by US-China trade tensions, provides an opportunity for Malaysia to strengthen its economy.
The country's electronics sector, which hosts major global players such as Intel and Samsung, is expected to be a significant beneficiary of this shift.
As Malaysia is a major player in the global semiconductor market, it will benefit from increased investment flows as companies seek alternatives to China.
Additionally, higher tariffs on Chinese goods could boost Malaysia's rubber glove industry, with companies such as Hartalega Holdings and Top Glove Corp expected to benefit.
Meanwhile, potential retaliatory tariffs by China on American agricultural products could increase demand for Malaysian palm oil, benefiting producers such as Kuala Lumpur Kepong and IOI Corporation.
In a separate report, Malaysia was reported to have approved investments amounting to RM160 billion in the first half of 2024, marking an 18% increase from the previous year's comparison.
This surge in investment, particularly in the services and manufacturing sectors, underlines Malaysia's growing appeal as a regional hub for high-quality investment.
