Malaysia: Malaysia continues to stand out across various industry sectors as a credible and well-positioned base for establishing and expanding regional operations, according to a consulting firm. Founder of Exponasia Growth Partners, Giuseppe Di Lieto, highlighted key factors such as the country’s multilingual workforce, regional connectivity, modern infrastructure, and active digitalisation efforts that make Malaysia particularly attractive to companies looking to test and scale within Southeast Asia.
According to BERNAMA News Agency, Di Lieto noted a ‘wait and see’ stance among international small and medium enterprises (SMEs) due to uncertainties surrounding the United States’ tariff dynamics. Given their limited capital and lower risk appetite, SMEs tend to delay expansion when the global trade outlook is unclear. However, with the tariff situation stabilising and Malaysia’s tariff reduced to 19 percent, many plans are expected to move into active consideration.
Despite global headwinds, Southeast Asia remains a long-term growth priority, though expansion strategies have become more selective and pragmatic. Di Lieto emphasized the strategic importance of diversification for Malaysia, positioning it as a stable, well-connected hub for regional operations. He stressed the need for continued investment in ease of doing business, talent development, and infrastructure to attract global and regional brands.
Di Lieto commended Malaysia’s ongoing reforms under the MADANI Economy framework, including industrial policy updates and digitalisation initiatives under the 13th Malaysia Plan (13MP), as a signal of the country’s intent to enhance competitiveness. He also praised Malaysia’s proactive regional diplomacy, such as brokering a ceasefire between Thailand and Cambodia, which elevated its standing as a trusted regional actor.
For businesses considering expansion, Malaysia offers the right combination of opportunity, capability, and connectivity in Southeast Asia. Di Lieto suggested that Malaysia focus on bringing back knowledge-intensive talent and enabling SMEs to scale beyond proximity markets. A stronger pipeline of SMEs evolving into regional champions would create the roles, environments, and career paths that high-calibre professionals seek.
Initiatives like the Industry ESG Framework for SMEs and targeted support under Budget 2025 are encouraging signs of Malaysia moving in the right direction. These efforts can be further strengthened with expanded access to funding, tailored export advisory support, and continued investment in digital upskilling. Di Lieto concluded that more homegrown success stories would make Malaysia compelling for foreign investors and Malaysians abroad eager to contribute.