KUALA LUMPUR: As geopolitical tensions continue to redraw the global investment map, Malaysia must remain firmly neutral to preserve its appeal as a trusted destination for foreign investors, investment and central bank leaders said.

Malaysian Investment Development Authority chairman Tengku Datuk Seri Zafrul Tengku Abdul Aziz said taking sides in an increasingly fragmented world could undermine Malaysia’s ability to attract investments on its own merits.

“One must not underestimate the importance of geopolitics,” he said during a panel discussion at Bank Negara Malaysia’s Sasana Symposium 2026.

“That’s why I believe it is important that the government continues to play that position where Malaysia continues to be neutral in its approach.”

Bank Negara Malaysia deputy governor Datuk Marzunisham Omar echoed the view, saying businesses are no longer chasing the lowest costs alone.

Instead, they are looking for resilient economies capable of weathering geopolitical tensions, export restrictions and growing geoeconomic fragmentation.

He said Malaysia’s neutral stance has enabled it to diversify both its trade relationships and sources of foreign direct investment, strengthening its position as an attractive investment destination.

“Businesses are looking for resilience, not only cost, knowing that this is the environment that we will be operating in, which is the environment of geopolitical tensions, geoeconomic limitations, export restrictions and so on.

“I do agree with Tengku Zafrul that we should maintain our neutrality because we have benefited from this. Our trade is very diversified. Similarly, the source of our foreign direct investment is also highly diversified.

“So that goes to show that our position as the indispensable connector has benefited us and we should continue with an open trade and investment policy,” he said.

Marzunisham said neutrality alone would not be enough if Malaysia failed to provide a stable economic environment.

He said investors also look for macroeconomic stability, low inflation, a stable exchange rate and predictable government policies before committing long-term capital.

“There is a need to always maintain macroeconomic stability, price stability, low inflation and a stable exchange rate. These are very important preconditions to provide a conducive environment for trade, investment and business decisions to be made, for businesses to thrive,” he said.

Marzunisham added that Bank Negara would continue to maintain an open and liberal foreign exchange policy to facilitate trade and investment flows