In a recent statement, Investment, Trade and Industry Minister Datuk Seri Tengku Zafrul Tengku Abdul Aziz reassured that the proposed implementation of targeted subsidies in Malaysia would not adversely impact foreign investments in the country.
He emphasised that investors typically focus on the long-term stability of national policies rather than short-term measures such as subsidies.
Speaking at a press conference following an ihya Ramadan and iftar event at Masjid Jamek Al Ansar, Felcra Changkat Lada, Tengku Zafrul pointed out that the longevity of certain sectors, like the semiconductor industry which has flourished over the past five decades, underscores investors’ confidence in Malaysia’s investment climate.
He highlighted that investors primarily consider the consistency of national policies when making investment decisions. “For example, I mention the semiconductor sector… this sector started in the 1970s and it has been 50 years, and that is the focus for our investors to see how the country’s policies are, if they are consistent they will invest.
“In terms of costs, we are still low compared to other countries because most companies do not receive targeted subsidies. Therefore, even if the subsidies are withdrawn for large companies, they and also investors will compare us with other countries, and our country is still attractive in terms of costs,” he said.
He further elucidated that despite the potential withdrawal of targeted subsidies for large companies, Malaysia remains competitive in terms of costs compared to other countries.
He noted that most companies do not rely on targeted subsidies, and even without such incentives, Malaysia’s attractiveness as an investment destination persists.
Responding to inquiries about the Malaysia-Korea Free Trade Agreement, Minister Tengku Zafrul disclosed that discussions between the two parties would commence at the officials’ level in May.
The resumption of negotiations follows a hiatus since 2019 due to unresolved issues deemed unfavorable to Malaysia. He expressed optimism regarding the forthcoming talks and highlighted both countries’ commitment to addressing sensitive sectors for mutual benefit.
Additionally, he provided updates on the progress of electric vehicle (EV) charging station infrastructure in Malaysia. He affirmed that discussions with relevant stakeholders indicated confidence in expanding charging station networks to meet growing demand.
In line with this, he reiterated his ministry’s commitment to reviewing the target of having 10,000 EV charging stations operational in Malaysia by 2025.
