Malaysia emerges as Southeast Asia's top destination for tourism and investment under Madani leadership
Malaysia was recently ranked the third most attractive destination for FDI globally in the newly released 2025 BPI, trailing only India and Rwanda. By NGA KOR MING
12 Jun 2025 11:50am
Malaysia has solidified its position as a rising star in Southeast Asia, emerging as the region's top destination for both foreign direct investment and tourism. - BERNAMA FILE PIX
MALAYSIA has solidified its position as a rising star in Southeast Asia, emerging as the region's top destination for both foreign direct investment (FDI) and tourism.
This achievement reflects the Madani government's commitment to good governance, investor-friendly policies and strong international diplomacy.
From easing visa regulations to deepening diplomatic ties, the Madani government is paving the way for Malaysia's global recognition.
Malaysia was recently ranked the third most attractive destination for FDI globally in the newly released 2025 Baseline Profitability Index (BPI), trailing only India and Rwanda.
Regionally, Malaysia leads Southeast Asia, outpacing peers such as Singapore, Vietnam, Indonesia and the Philippines. Housing and Local Government Minister and UN Habitat General Assembly president Nga Kor Ming. - BERNAMA FILE PIX
The BPI, developed by economist Daniel Altman evaluates 100 countries based on their potential for profit generation, value preservation and capital repatriation over a five-year horizon.
In another significant development, Malaysia has overtaken Thailand as Asean's most visited tourist destination in the first quarter of 2025, according to Vietnam Express.
The report, citing official data from several Asean nations, revealed that Malaysia welcomed over 10.1 million foreign tourists from January to March 2025.
Thailand came in second with 9.55 million visitors, followed by Vietnam and Singapore with six million and 4.31 million arrivals, respectively.
Malaysia's recent appointment as the United Nations Habitat Assembly president is a timely recognition of the country's leadership in sustainable urban development.
This role positions Malaysia to deepen international cooperation and expand the country's influence on the global stage.
As Malaysia rises on the global stage, it is crucial to maintain momentum to uphold investor confidence and ensure continued political and economic stability.
Nga Kor Ming is the Housing and Local Government Minister and UN Habitat General Assembly president. The views expressed in this article are his own and do not necessarily reflect those of Sinar Daily.
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Malaysia should consider incorporating these elements such as agile regulatory sandboxes, performance-based innovation grants, and a national work-integrated and lifelong learning agenda as part of its next phase of competitiveness reforms. More importantly, Malaysia must shift from a primarily input-driven model to one rooted in productivity and innovation-led growth. This means significantly boosting investments in R&D, creating stronger linkages between academia and industry, and nurturing a vibrant startup ecosystem. Malaysia should also emulate countries that rank highly in competitiveness, such as Switzerland, South Korea and Sweden, which lead in patents, intellectual property and cutting-edge innovation globally. We can try to achieve this in strategic sectors such as advanced electronics, AI, clean energy and biotech. Incentivising private sector innovation, reforming procurement to favour innovative solutions and enhancing funding mechanisms for techpreneurs will be crucial steps forward. Innovation must be made the 'engine' of our long-term economic resilience and prosperity. It is imperative that we maintain this trajectory. The government has set a goal for Malaysia to be among the Top 12 most competitive economies by 2033. This is ambitious, but now, demonstrably achievable. It must be stressed that improved economic competitiveness means increased chances of attracting high-impact investments which will create more job opportunities with higher wages. This latest ranking shows that Malaysia is not just playing catch-up, but also clearly positioning itself to lead, especially in today's complex geoeconomic landscape. Our message to the world has been clear and consistent: Malaysia is serious about economic reforms, open for business and ready for the challenges ahead. Ultimately, Malaysia's improved competitiveness is a function of political will and determined leadership. It shows what can be achieved when a government dares to reform and focus on making tough but necessary decisions for Malaysia's future prosperity. Tengku Datuk Seri Zafrul Abdul Aziz is the Investment, Trade and Industry Minister. The views expressed here are his own.
