Kuala lumpur: The government will continue to introduce progressive reforms in investment and trade policies to strengthen Malaysia’s global competitiveness, said the Ministry of Investment, Trade and Industry (MITI) today. The ministry highlighted various strategies being implemented through a Whole-of-Government approach involving agencies like the Malaysian Investment Development Authority (MIDA) and the Malaysia External Trade Development Corporation (MATRADE) to boost export competitiveness and investor confidence.

According to BERNAMA News Agency, initiatives include the introduction of the New Investment Incentive Framework and strengthening the supply chain ecosystem between local companies, multinational corporations, and large domestic companies. As a result, Malaysia recorded a foreign direct investment (FDI) net inflow of RM17.2 billion in the first half of 2025, surpassing the RM14.8 billion recorded in the first half of 2024.

MITI noted that Malaysia’s strong economic fundamentals, strategic geographical position, and extensive trade network have enhanced the country’s resilience against global and regional crises. This solid foundation has allowed Malaysia to maintain a surplus in its current account of the balance of payments.

In the first half of 2025, Malaysia recorded a current account surplus of RM17 billion, higher than the RM13 billion in the same period in 2024. However, the current account surplus in the second quarter of 2025 decreased by RM0.3 billion due to higher imports of capital and intermediate goods. MITI expects these imports to contribute to positive spillover effects on Malaysia’s exports in the short and medium term.

The ministry’s response was directed at a question from Tan Sri Muhyiddin Yassin (PN-Pagoh) concerning the government’s efforts to restore export competitiveness and investor confidence in relation to the current account surplus and FDI performance.