SINGAPORE – Malaysia continues to attract strong foreign investor interest despite growing political uncertainty following a string of local election setbacks for Prime Minister Anwar Ibrahim’s coalition.

“We still have a lot of applications coming,” Investment, Trade and Industry Minister Johari Abdul Ghani told reporters on Aug 5, when asked whether recent election results had affected investor confidence. “We are busy processing them.”

The defeat of Anwar’s coalition in the Negeri Sembilan state election on Aug 1, following recent losses in Johor and Sabah, has raised doubts about his prospects of winning another term in the next national election that must be held by early 2028.

Speaking earlier at a conference in Kuala Lumpur, Johari said political stability, policy consistency and governments’ ability to deliver on their commitments have become increasingly important considerations for global investors.

“Protecting and strengthening investor confidence must remain our national priority,” he said.

Johari said Malaysia should focus not only on attracting large volumes of investment but also on ensuring projects contribute to long-term economic development by creating high-value industries, skilled jobs and domestic capabilities.

New investments should complement rather than displace existing local businesses, he said, describing the approach as “purposeful development” rather than protectionism.

Malaysia should concentrate on industries where it already has competitive advantages, includin...