I am currently in the Malaysian capital, Kuala Lumpur, participating in the Third Country Training Programme (TCTP): Investment Promotion for African Countries, which is jointly organised by Malaysian Investment Development Authority (MIDA) under the Malaysian Technical Cooperation Programme (MTCP) and the Japan International Cooperation Agency (JICA).
Malaysia supports one hundred and forty-four (144) developing countries under the framework of the South-South Cooperation since 1980 through the Malaysian Technical Cooperation Programme (MTCP). In 1983, Japan started its Third Country Training Programme (TCTP) in Malaysia. Subsequently, Malaysia and Japan began to collaborate in 1992 to assist developing countries under the MTCP Recipient List within this TCTP arrangement.
The key focus of the training programme is to share Malaysia’s experience on its economic developments and country’s transformation from an agriculture based into manufacturing and services. This also includes information sharing through success stories from local companies, relevant public and private institutions involved in the economic development and the country’s transformation.
The main objectives of the TCTP ‘Investment Promotion for African Countries’ course are to provide an insight on MIDA’s organisational mechanism in promoting investment and coordinating development in the manufacturing and services sectors in Malaysia, and deepening the working relationship between MIDA and investment promotion agencies of the participating countries. In addition, the programme is to enhance investment and trade opportunities between Malaysia and the participating countries.
During the programme, I became aware that Malaysia’s investment story is built on its robust fundamentals, a strategic geographic location and proactive government policies that have consistently attracted significant foreign direct investment (FDI). While FDI flows have had some fluctuations, recent reports from 2024 and 2025 show that the country continues to secure major commitments, particularly in the high-tech and digital sectors.
While Malaysia offers a strong value proposition, the investment environment is not without challenges. Investors must navigate complex regulations, including affirmative action policies that favour ethnic Malay (Bumiputera) entities in certain sectors. The government’s continued influence in the economy through state-owned banks and government-linked companies can also affect competition.
Despite these issues, the current administration’s commitment to structural reforms and addressing bureaucratic inefficiencies, as demonstrated by the 2025 competitiveness rankings, signals a strong resolve to enhance Malaysia’s investment attractiveness.
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