KUALA LUMPUR: Sarawak’s green methanol projects and the Johor-Singapore Special Economic Zone (JS-SEZ) are projected to boost Malaysia’s economic growth and attract foreign investments over the next two to three years, according to Nomura Asset Management.
Country head for Malaysia Leslie Yap said these initiatives position Malaysia as a destination for global investors seeking opportunities in Southeast Asia for the long term.
“Those (JS-SEZ and Sarawak’s green methanol) are areas where they need capital and want to grow. Some of these projects are pretty good. There’s going to be quite a decent amount of investment going in, so hopefully it comes to fruition. The economy can benefit from that,” he said at the Nomura Asset Management Malaysia’s Breakfast Conference 2025 today.
Yap said the current foreign selling and overall index pressure on the Malaysian equity market is short term. He explained that short-term fund flows tend to be influenced by concerns about the global economy, US interest rates and political factors, such as the new Trump administration’s trade policies.
“When you talk about fund flows, which are more short-term in nature, global investors will say, ‘Let’s pull it back to dollar-class assets. Let’s keep it there. Make sure we see more certainty and clarity in what they’re trying to do – meaning the US and Trump – before we have a view on emerging markets.”
Yap said many regional or foreign investors will come back and relook Malaysia, given its relatively stable political situation. “Our team also believes and hopes that these factors can continue – basically political stability to drive economic growth. At the end of the day, politics are politics. That’s short-term.”
When it comes to diversification of the supply chain in electronics, Yap commented, “Yes, tariffs are there in the near term, but we should continue to see more investment in the Malaysian space from global investors.
“Infineon, for example, has mentioned something in the region of €2 billion over 10 years (for Malaysia). They’re going to commit to that, and then next year, pull out? No. It’s a fixed asset investment, not like the stock market.”
Additionally, Yap said Malaysia, relatively small to other emerging markets as a whole, has done well because it has positioned itself as a place for data centres. “We are also supported by the availability of liquidity in the domestic market, meaning the funds, pension funds, and national funds are here to support,” he added.
Separately, Nomura Asset Management Malaysia Sdn Bhd, the Malaysian fund management unit of Nomura Holdings Inc, today launched the Japan Shariah Active Core Fund to offer investors syariah-compliant exposure to Japan’s dynamic equity market.
The Nomura Japan Shariah Active Core Fund is the first Malaysian unit trust fund that primarily invests in syariah-compliant companies domiciled in or derive their earnings from Japan. The fund is available for a minimum initial investment of RM1,000 or US$1,000 (RM4,500).
The active core strategy of the fund is designed to capture the essence of Japan’s evolving economy without being tied to either value or growth investing, ensuring that the portfolio remains balanced and resilient. This dual focus allows the fund to capture opportunities in high-growth sectors while maintaining a foundation in value-oriented investments, offering a proposition to investors seeking both stability and growth.
“Being one of Japan’s largest asset managers, we have been managing active equities worldwide for over 60 years, beginning in Japan. We are thrilled to introduce the Japan Shariah Active Core Fund, which blends our extensive expertise in Japanese equities with the values of syariah principles,“ said Nomura Islamic Asset Management managing director Atsushi Ichii.
