Malaysia is doubling down on economic transformation through regional collaboration, fiscal reform and green industrialisation, as it positions itself at the heart of ASEAN’s growth engine, Finance Minister II Datuk Seri Amir Hamzah Azizan told investors at the Invest ASEAN Malaysia Conference 2025.
Highlighting ASEAN’s economic weight, US$4 trillion GDP and 700 million people, Amir Hamzah pointed to Malaysia’s strong integration into the region, with ASEAN trade accounting for 26.6% of total trade and over 10 million tourist arrivals in the first quarter of 2025 (1Q25), two-thirds of them from ASEAN countries.
Amir Hamzah said the Johor-Singapore Special Economic Zone (JS-SEZ), in particular, has attracted RM16.7 billion in committed investments and the government aims to draw up to RM100 billion by year-end.
“The Forest City Special Financial Zone within the JS-SEZ, meanwhile, is gaining traction among global family offices, supported by a 20-year 0% tax structure. Already, 32 firms have expressed interest, and two have secured regulatory approval to establish operations there,” he added.
He stressed that Malaysia’s economic outlook remains resilient, with 2025 GDP growth projected at 4.5%-5.5%. Growth in 1Q25 was supported by private consumption and investments, despite moderating trade.
On fiscal reform, Amir Hamzah reaffirmed the government’s target to cut the deficit to 3.8% in 2025, from 4.1% last year.
“Upcoming subsidy rationalisation for RON95 petrol and the expansion of the Sales and Services Tax are expected to broaden the revenue base, ensuring continued investments in infrastructure, talent and innovation,” he said.
In the energy and industrial space, the minister shared that Malaysia is pressing ahead with three national strategies, namely, the National Industrial Master Plan 2030, which has secured RM95 billion in investment; the National Semiconductor Strategy, attracting RM55.8 billion in electrical and electronics investments in 2024 and the National Energy Transition Roadmap, with targets of 70% renewable energy (RE) capacity by 2050.
Notably, Amir Hamzah said Malaysia is taking the lead in ASEAN’s cross-border RE grid, starting with a subsea connection from Vietnam to Singapore via Malaysia’s grid, positioning itself as a green energy transit hub in the region.
He also spotlighted Bursa Malaysia’s sustainability efforts, including the Centralised Sustainability Intelligence platform and Bursa Carbon Exchange, both aligned with ASEAN-wide goals on ESG and carbon neutrality.
Overall, with the 13th Malaysia Plan and Budget 2026 set to be tabled in the coming months, Amir Hamzah promised continuity in reform, inclusivity and resilience.
“In times of great volatility, fundamental opportunities become more visible. ASEAN and Malaysia stand ready to seize them,” he said.
Source: https://www.businesstoday.com.my/2025/07/01/malaysia-ramps-up-regional-growth-push-eyes-rm100-billion-investment-in-js-sez/