PETALING JAYA: Malaysia’s investment and trade policy is expected to see continuity following Datuk Seri Johari Abdul Ghani’s appointment as the new Minister of Investment, Trade and Industry, with economists saying stability will be key to sustaining investor confidence amid global uncertainties.
Putra Business School Associate Professor Dr Ida Yasin said Johari’s seniority and experience place him in a strong position to lead one of the country’s most critical economy-related ministries.
“He is a senior leader in our country, so I believe that his experience will contribute positively to Miti (the Ministry of Investment, Trade and Industry). This is a very important ministry, and we need a minister with experience, so he is in the right position,” she told SunBiz.
On near-term priorities, Ida said the policy direction for trade and industry has largely been set under the 13th Malaysia Plan and Budget 2026, and the focus now should be on execution rather than introducing sweeping changes.
“From the government perspective, everything has been laid out. What we hope for under the new leadership is continuity,” she said, adding that policy stability is especially important for investors making long-term commitments.
“Investors do not like instability or flip-flop policies because it makes planning difficult. Even if we change leaders, policies should remain stable. This is important to instil confidence among investors and the business community.”
Williams Business Consultancy Sdn Bhd founder and director Professor Geoffrey Williams echoed this view, saying Malaysia’s overall foreign direct investment (FDI) strategy remains solid, particularly with existing initiatives already gaining traction.
“The strategy to attract FDI is already strong, not just with data centres but now with the Johor-Singapore Special Economic Zone,” he said, noting that the next 12 to 18 months would be crucial.
“With GE16 (16th general election) approaching, continuity and consolidation of FDI will be more important than changing policy direction.”
While FDI continues to attract attention, Williams said, Miti should place greater emphasis on reviving domestic direct investment, which has been relatively weak.
“His emphasis should be on domestic investment because this is lacklustre at the moment,” Williams said, adding that stronger domestic investment would complement foreign inflows and build resilience against external shocks.
Both economists also pointed to trade facilitation as a key area where Johari’s leadership could make an immediate impact.
Wiiliams said Malaysia should push for a more comprehensive implementation of the Asean-wide agreement on the promotion of trade in services, and goods-related reforms, while also rethinking tariff structures.
“Johari should focus on trade by implementing the Asean Trade Repository comprehensively and extending the tariff exemptions given to the US to all trading partners,” he said.
According to Williams, removing non-tariff barriers should be at the top of Miti’s trade policy agenda. “This would make trade more competitive, agile and innovative, which in turn promotes both FDI and domestic investment,” he said.
Ida said Johari’s corporate and finance background could be an advantage in navigating complex trade-offs between industrial development and global market realities.
“With the level of global uncertainty we are facing now, and over the next few years, there will be many challenges,” she said. “We hope that under his leadership, he will be able to manage these challenges delicately and place the country in a better position with minimal impact on the economy.”
She added that geopolitical tensions, slower global growth and shifting supply chains would continue to pose risks, making steady leadership at Miti even more critical.
Looking ahead, the economists believe Johari faces the dual challenge of sustaining Malaysia’s attractiveness to global investors while ensuring domestic industries are not left behind.
Williams said aligning industrial policy with global trends – such as supply chain diversification, digitalisation and green investment – would be key, but cautioned against unnecessary policy disruptions.
“Trade competitiveness comes from removing frictions, not adding new rules,” he said. “If Malaysia gets this right, it will strengthen both trade performance and long-term investment inflows.”
Overall, Johari’s appointment is seen as a signal of continuity, with the immediate task centred on executing existing plans, strengthening trade facilitation and restoring confidence among investors navigating an increasingly uncertain global environment.
