KUALA LUMPUR: Malaysia continues to stand out across various industry sectors as a credible and well-positioned base for establishing and expanding regional operations, according to a consulting firm.
Exponasia Growth Partners founder Giuseppe Di Lieto said these were driven by, among others, the country’s multilingual workforce, regional connectivity, modern infrastructure and active digitalisation efforts.
“These factors make Malaysia particularly attractive to companies looking to test and scale within Southeast Asia,“ he told Bernama in an email interview recently.
He said the firm had observed a clear “wait and see” stance in recent months, particularly among international small and medium enterprises, which are their core focus.
Much of this hesitation, he said, stemmed from uncertainties surrounding the United States’ tariff dynamics, and given their limited capital and lower risk appetite, SMEs tend to delay expansion when the global trade outlook is unclear.
Despite seeing steady requests for information and pre-feasibility discussions, most companies have been holding back.
“Now that the tariff situation seems to be stabilising, and Malaysia’s tariff being reduced to 19%, we expect many of these plans to move into active consideration,“ he added.
More broadly, despite global headwinds persisting, Southeast Asia remains a long-term growth priority, but expansion strategies have become more selective and pragmatic, said Di Lieto.
He said recent developments, such as the US tariff dynamics, have reinforced the strategic importance of diversification.
“For Malaysia, this means positioning itself not merely as a cost-competitive location, but as a stable, well-connected, and capable hub for regional operations.
“To attract global and regional brands, Malaysia must continue investing in ease of doing business, talent development, and infrastructure, while clearly articulating to the global business community its role as a strategic diversification node in a fragmented global landscape,“ he added.
Di Lieto lauded Malaysia’s ongoing reforms under the Madani Economy Framework, from industrial policy updates to digitalisation initiatives under the 13th Malaysia Plan (13MP), as it signalled a serious intent to raise the country’s competitiveness.
“At the same time, the government’s proactive stance on regional diplomacy, including Malaysia’s recent leadership in brokering a ceasefire between Thailand and Cambodia, has further elevated its standing as a trusted regional actor.
“This kind of stability-focused diplomacy enhances Malaysia’s credibility in the eyes of global investors seeking predictability, neutrality, and constructive engagement in Asean.
“For businesses looking to expand, Malaysia increasingly offers the right combination of opportunity, capability and connectivity throughout the Southeast Asia region,“ he said.
Commenting on 13MP, Di Lieto believed that Malaysia should double down on two priorities – bringing back knowledge-intensive talent and enabling SMEs to scale beyond proximity markets.
He said top talent abroad will not return for income alone, but also for opportunities – a credible, growth-oriented ecosystem of employers that offers not just jobs, but meaningful professional challenges, international exposure, and long-term career prospects.
“For this, Malaysia needs a stronger pipeline of SMEs evolving into regional champions. These firms generate the roles, environments and career paths that high-calibre professionals seek.
“Just as importantly, a more ambitious and globally-oriented SME sector would strengthen Malaysia’s position as a launchpad for companies looking to expand into Southeast Asia,” he said.
Di Lieto said initiatives such as the Industry ESG Framework for SMEs and targeted support under Budget 2025 are encouraging signs that Malaysia is moving in the right direction.
To fully unlock their impact, these efforts can be further strengthened with expanded access to funding, tailored export advisory support, and continued investment in digital upskilling.
“The more home-grown success stories, the more compelling Malaysia becomes, not only for foreign investors but also for Malaysians abroad who are ready to come home and contribute,” he added. – Bernama