Malaysia’s stance on Israel won’t put off investors, say economists

Economists say a stable political foundation is a key factor in attracting foreign investment. (Bernama pic)

PETALING JAYA: The government’s consistent condemnation of Israel’s attacks on Palestine will not deter foreign investors such as the US from investing in Malaysia, economists say.

Commenting on Prime Minister Anwar Ibrahim’s view that Malaysia’s stance on the war in Gaza will not affect the country’s relations with its US and European investors, two economists who spoke to FMT said Malaysia had been a vocal critic of Israel’s attacks on Palestine for decades.

They added that a stable political foundation was more important in attracting foreign investment.

“There is no real impact from the prime minister’s speeches (condemning Israel) on investment,” said Universiti Tun Abdul Razak’s Barjoyai Bardai.

“Even though they (foreign investors) know that most Muslim countries condemn Israel, they still invest in Malaysia.”

He also noted that Malaysia had been vocal in condemning Israel since the administration of former prime minister Dr Mahathir Mohamad.

Ahmed Razman Abdul Latiff from the Putra Business School meanwhile said the political situation in Malaysia was now more conducive to investment, especially as Anwar’s government appeared to be stable and enjoying a comfortable majority.

“The unity government is expected to remain in power until the end of the term, and there is also additional support from four Bersatu MPs,” he said.

Anwar yesterday assured the Dewan Rakyat that Malaysia’s condemnation of the war in Gaza would not affect the country’s relations with foreign investors, especially the US – a key ally of Israel.

Bernama recently reported that the death toll from Israel’s ongoing attacks in Gaza had jumped to over 13,300, including 5,600 children and 3,550 women, since Oct 7.

Anwar, who recently attended the Asia-Pacific Economic Cooperation (Apec) Leaders’ Week 2023, said the country had secured RM63 billion in proposed investment from the US during the trip.

Last week, Bernama quoted him as saying that RM8.33 billion of the proposed investment came from the trade and investment mission to the US, organised before the start of the Apec summit, and the remainder from various one-on-one meetings he had held.