Malaysia is in a prime position to be a major beneficiary of the global economic transformation.

However, organizations need to continue to seize the opportunities to boost international connectivity in a post-Covid period, HSBC said at the HSBC Asian Business Forum officiated by Minister of Economy Rafizi Ramli.

Speaking at the forum, HSBC Malaysia CEO Datuk Omar Siddiq said, “The current global market conditions have only accelerated the focus on shifting the world’s economic center of gravity towards Asia, with the Asean region playing a critical role in fueling this development.

“Located strategically in the heart of Asean, Malaysia continues to offer great potential for investors. Among the challenges of 2022, the country was a clear regional outperformer fueled by its resilient external engine and flourishing domestic demand.

“While HSBC Global Research expects 2023 growth to moderate to 4%, this continues to be a very robust growth rate in this day and age.

“At the same time, for organizations in the country to gain a competitive edge in a new era and to attract more investments, it will be imperative for them to capitalize on opportunities to strengthen their international connectivity.

“This will be critical to opening up access to growth and development prospects.”

The areas that businesses in Malaysia need to pay the closest attention to in 2023 to differentiate themselves and encourage greater investments include:

Embracing economic pivot to Asia, Asean 

Asia is a bright spot in the global economy, with the Asean region being pivotal to its growth. Malaysia itself has risen as a go-to investment destination world over.

Leveraging the government’s conducive business environment, organizations here now need to increasingly embrace opportunities for growth. This includes capitalizing on initiatives offered as part of the Regional Comprehensive Economic Partnership (RCEP) framework and using it to promote the benefits of investing in Malaysia while also seeing how it can facilitate business expansion across the Asia Pacific region.

China’s reopening has major benefits for global economy

As Malaysia’s largest trading partner, China’s reopening will provide significant benefits.This includes enhanced investments from China in a range of industries and also potential investment opportunities in China for businesses in Malaysia.

Companies here will now need to seek out such opportunities proactively and demonstrate why they are an ideal fit for a particular investment project.

Supply chain diversification a boost for Malaysia

Shifting supply chains have pushed companies around the world to find ways to adapt and sustain the supply of goods and services.

The prospect of multinational manufacturing firms relocating their production base to countries like Malaysia is accelerating.

Many businesses have also adopted a “China +1” strategy sourcing products from Chinese suppliers plus at least one other country.

Now more than ever, businesses here should reassess global footprints of both their production and supplier bases.

Investing in digital economy provides great gains

Business transformation will no longer be driven by one technology – it will take a combination – bringing together artificial intelligence, analytics, the Internet of Things, 5G and distributed ledger technology.

It is increasingly important for firms to recognize the gains of investing in the digital economy and accelerate digitalization efforts.

Continuous investment in digital will not only boost the resilience of companies but also open up new cross-border value-creation possibilities, e.g. the implementation of blockchain can vastly enhance the efficiency of trade finance transactions.

Significant opportunities exist for businesses in Malaysia to thrive in a new era, including growing investments in areas that will facilitate greater international connectivity while enabling them to gain a competitive advantage.

But those opportunities won’t just come unsolicited. Businesses need to seize them and effectively capitalize on them for growth.