By S. Birruntha
KUALA LUMPUR: Prime Minister Datuk Seri Anwar Ibrahim's overseas working visits have strengthened investor confidence and contributed to a rise in approved investments, economists said.
Since the beginning of the year, Anwar has actively engaged with world leaders and investors to promote Malaysia as a competitive and stable investment destination.
His working visits have taken him to key markets including France, Italy, Brazil, Russia, the United Kingdom, Belgium, the United Arab Emirates, Bahrain, Vietnam, Thailand, Singapore and Indonesia.
Economists say such outreach is timely, as Malaysia looks to enter new markets and strengthen existing ones to attract investment, create jobs and adopt new technologies
This has become more pressing following the United States' recent tariffs, which have disrupted global trade flows and prompted countries to diversify their markets.
Against this backdrop, Malaysia and the broader Asean region remain attractive to both Western and Asian investors.
Recognising this, Anwar has used his international visits to position Malaysia as a trade and investment hub, particularly during the country's Asean chairmanship this year.
Bank Muamalat Malaysia Bhd chief economist Dr Mohd Afzanizam Abdul Rashid said Anwar has been well received and is highly regarded by the international community and global leaders.
"In that sense, he was able to demonstrate his persona and the ability to convince investors that Malaysia is the right avenue for long-term investment.
"This has translated into rising approved investments, higher foreign participation in government securities, as well as positive assessments by credit rating agencies.
"These trips have also contributed to an increase in foreign direct investment (FDI) and trade deals so far," he told Business Times.
Afzanizam noted that the US tariffs have placed Malaysia in a difficult position, and the government needs to take a pragmatic approach to address the situation.
He said that on one hand, the government continues to seek platforms to engage and negotiate with US officials.
On the other hand, he said it must also focus on diversifying and expanding market access to key regions such as Asean, the European Union (EU) and the BRICS community.
"That way, Malaysia should be able to mitigate the impact of US tariff shocks," he added.
Meanwhile, economist Dr Geoffrey Williams said international trade visits are crucial for strengthening trade and investment relationships and for gaining access to new markets and opportunities.
He added that such visits are especially important ahead of free trade agreement (FTA) discussions with the European Union, for example.
"There has been positive news on potential trade and investment inflows, but Malaysia has also been in buying mode, in the case of airplanes, for example.
"Malaysia must continue to maintain a diversified trade matrix with many countries and not rely too heavily on the US, China or Asean.
"Diversified trade reduces risk in the face of global uncertainty, as we are seeing now," he said.
Nusantara Academy for Strategic Research senior fellow Dr Azmi Hassan said face-to-face meetings between world leaders are crucial, not just for geopolitical reasons.
He pointed to Ukrainian President Volodymyr Zelensky, who continues to travel abroad to seek support despite his country being at war.
"Similarly, Prime Minister Anwar, like any leader, prefers to engage in person and make official visits whenever possible.
"His recent visits to Italy and France, followed by Brazil, were likely driven by both economic and geopolitical considerations," he said.
Azmi added that although trade outcomes are hard to measure immediately, what matters most is whether international partnerships and expressions of interest lead to real investments over time.
He highlighted that during the Brazil visit, Anwar also met with Indian Prime Minister Narendra Modi, which is important as India is a key trading partner for Malaysia.
"These are meaningful steps, even if the outcomes are not instantly visible. The benefits may take time to materialise, but they are real and should be recognised.
"In fact, these trips serve important strategic purposes on several fronts," he said.
Singapore Institute of International Affairs senior fellow Dr Oh Ei Sun said generally, when a country's head of government actively pursues trade and investment opportunities abroad, it sends a positive signal that can strengthen investor confidence.
He noted that continued engagement and strategic follow-up are important to ensure that initial interest generated through these visits is nurtured into concrete outcomes over time.
Oh added the Investment, Trade and Industry Ministry has recorded encouraging growth in foreign direct investment and trade agreements following these international missions, reflecting the positive momentum.
Looking ahead, he said Malaysia should continue to carefully align its trade and diplomatic engagements in a way that supports nation
Source : pms-foreign-engagements-credited-investor-confidence-investment