The Volume Advantage: Why Competitive Pricing and High Turnover Beat High Margins in a Value-Driven Market - by Nik Zafri

A simple business scenario:

 The cost of one product is RM0.50.

• Seller A buys 1,000 units and resells them at RM1.00 (a 50% margin)
• Seller B buys 500 units and sells them at RM0.80 (a 30% margin).

Both offer the same product quality and service. However, within one week, A only manages to sell 100 units, while B sells all 500 units and continues receiving similar demand.

1. Lower Margin, Higher Volume Can Outperform Higher Margin, Lower Volume

• A sells at a higher profit per unit (RM0.50) but only manages to sell 100 units.
• B sells at a lower profit per unit (RM0.30) and manages to sell 500 units, fully clearing stock.

 In absolute profit terms:

• A’s profit: 100 units × RM0.50 = RM50
• B’s profit: 500 units × RM0.30 = RM150

So, B earns 3 times more profit despite a lower margin.

Lesson 1 - A business strategy cannot rely solely on high margins. Competitive pricing + high turnover often leads to better total profit.

2. The Market Dictates the Price - Not the Seller

Both products are identical in quality and service. Yet customers prefer the cheaper option.

Lesson 2 : Customers will gravitate to the price that feels fair and offers value, especially when comparing identical products. Pricing must align with what the market is willing to pay.

3. Accessibility and Affordability Expand Your Customer Base

A higher price reduces your reachable market. B’s lower price makes it accessible to more buyers, which increases volume.

Lesson 3 : Sometimes, the best approach is to reduce your margin but widen your reach.

4. Cash Flow Matters

• B sells all 500 units, turning stock into cash quickly.
• A sells slowly, locking capital in inventory.

Lesson 4 : High turnover improves cash flow, reduces risk of dead stock, and allows faster reinvestment.

5. Customer Behavior: Perception of Fairness and Trust

Even if quality and service are the same, customers may perceive A’s pricing as too high, creating resistance.

Lesson 5 : Customers are more likely to trust a price that aligns with their perception of value.

6. Long-Term Advantage - Repeat Customers

If B continues providing good value, customers remember the “fair price” and come back.

A risks losing customers permanently if perceived as overpriced.

7. Strategy Must Match Market Conditions

• A is using a premium pricing strategy in a market that behaves like a value-driven market.
• B is aligning with what the market wants.

Lesson 6 : Choose a strategy that fits the market, not the seller’s personal preference.

In short : A’s mistake is prioritizing profit margin instead of total profit and turnover. B wins because of competitive pricing, faster cash flow, and better alignment with customer expectations.

8. Understanding the Surroundings

What Seller B is doing reflects a deeper understanding of economic reality and customer psychology during a downturn.

i. B Recognizes Reduced Purchasing Power

In a slow or uncertain economy, customers:

• become more price-sensitive
• compare options more carefully
• cut back on non-essentials
• prefer lower-priced alternatives even if quality is the same

Seller B's pricing aligns with this behaviour, making it easier for customers to continue buying.

 

ii. B Reduces the Customer’s Financial Burden

By lowering margin and offering a fairer price:

• customers feel less “pain of paying”
• they can buy more or more frequently
• they perceive B as understanding and trustworthy

This builds loyalty - very valuable in tough times.

iii. B Helps Customers Regain Purchasing Power

When a seller provides value pricing:

• customers conserve money
• they can buy other necessities
• they feel more in control of their spending

This creates repeat demand because customers feel respected.

iv. Pricing Strategy Reflects Situational Awareness

• Seller A uses a premium-pricing mindset in a value-driven market.
• Seller B uses a market-aligned strategy, showing awareness of inflation, declining disposable income, cost-of-living pressures and competitive landscape

This awareness is a major advantage, especially when consumers are cautious.

v) B Gains Trust During Hard Times

Customers remember sellers who:

• remained affordable
• did not take advantage of the situation
• provided consistent value

This often results in long-term loyalty even after the economy improves.

In short : Yes - Seller B’s success strongly indicates that:

• B understands the economic downturn
• B empathizes with customers’ reduced purchasing power
• B adapts pricing to match real-world conditions

 

9. B Hires a Worker (10 sen/day) While A Sells Alone

a. B Invests in Leverage while A Relies Only on Himself

B understands that:

• One person alone can only sell so much,
• By hiring help, he increases capacity, reach, and speed.

Even though the worker is paid 10 sen per day, B trades a small cost for a large increase in sales volume.

A, however, is limited by time, physical ability, energy, customer reach

This is a classic difference between working IN the business vs working ON the business.

b. B Converts Cost into Growth

B’s commission cost is tiny compared to his profit:

• Total profit: RM150
• Worker cost (example: if 7 days × RM0.10): RM0.70
• Net profit: RM149.30

The worker cost is less than 1% of B’s earnings (to me, this is good trade-off)

This shows B understands scalability.

c. A Avoids Expenses but Also Avoids Growth

A tries to “save money” by doing it alone.

This is common among small businesses, but:

• Saving costs does not equal making profit.
• Doing everything alone slows the business.
• Opportunity cost becomes huge.

A’s choice actually costs him more because he misses out on potential sales.

d. B Creates Employment and Strengthens Community Trust

Hiring someone even for a small commission:

• builds goodwill

• creates local support

• strengthens reputation

• increases customer trust (“This seller is growing”)

Customers often prefer businesses that create jobs rather than solo traders who appear stagnant.

v) B Understands That Cash Flow Is King

The faster the stock clears:

the faster money returns, the faster B can reinvest, the faster B grows

Hiring help accelerates this cycle.

A, by relying on only himself, slows everything down.

vi. B Is Playing a Long-Term Game, A Is Stuck in Day-to-Day Survival

• B is building a system.

• A is building self-dependence only.

Systems win long-term.

In summary

Seller B shows understanding of:

• leverage
• business scaling
• cash flow management
• customer behaviour
• market environment
• productivity
• long-term business mindset

Seller A focuses on:

• saving costs
• doing it alone
• short-term thinking
• limited growth

CONCLUSION

The scenario of Seller A and Seller B decisively illustrates that a successful business strategy cannot rely solely on high margins. Seller Bs victory, earning triple the profit (RM150 vs. RM50) despite a lower margin, highlights the power of competitive pricing, high turnover, and strategic alignment with customer expectations. 

By recognizing reduced purchasing power in the market and prioritizing cash flow and accessibility , Seller B not only maximized absolute profit but also cultivated customer trust and loyalty by offering perceived fairness and value. Furthermore, Bs willingness to leverage a worker for a small cost demonstrates an understanding of scalability and long-term systems thinking over As focus on cost-saving and self-dependence. 

Ultimately, success comes from choosing a strategy that fits the market, not the sellers personal preference.

The ASEAN Equation: Unity in Uncertainty - Overview by Nik Zafri

Please also read the previous article 

Given the attendance of major powers such as President Donald Trump - United States, reps from China and Russia, the key topics agenda would likely be :

1. Trade, Economics and Supply Chain resilience

The U.S. and China are in trade talks on the sidelines. The U.S., under Trump, is threatening big tariff hikes on Chinese exports and seeking concessions; the China leadership sees ASEAN as a priority partner.

The ASEAN region is concerned about how U.S. tariffs and shifting global trade flows affect its export-and-manufacturing base. 

China is pitching its upgraded “Free Trade Area 3.0” with ASEAN, emphasising digital economy, green economy, and production/supply-chain integration. 

ASEAN is also seeking to expand partnerships beyond the traditional powers (e.g., Latin America, Africa) as host Malaysia emphasises “inclusivity and sustainability.”

2. Regional Security, Maritime Disputes and Neutrality

The summit will discuss the broadening power competition in the region: the narrowing of ASEAN’s “space for neutrality” as big-power rivalry deepens (trade, tech, security) was explicitly flagged by Malaysia’s foreign minister. 

Maritime issues especially in the South China Sea and unresolved border or access disputes will be on the table. 

Internal ASEAN conflict management remains a key focus particularly the recent border clashes between Thailand and Cambodia. Malaysia has played a pivotal role in facilitating the ceasefire, a contribution publicly acknowledged and appreciated by President Trump. The summit is expected to witness the formal signing or endorsement of the ceasefire agreement or a broader peace framework.

3. ASEAN’s Internal Cohesion and External Partnerships

The 10 current ASEAN members plus the accession of Timor‑Leste as the 11th member will be formalised at this summit. 

ASEAN is going to meet with “dialogue partners” (China, U.S., Russia, Japan etc) in separate sessions.  It is not known if BRICS is going to be discussed.

The bloc is under pressure from multiple directions (economic, strategic) and must manage its collective identity and voice especially with members having differing alignments. 

4. Big Power Diplomacy and the U.S. - China – Russia Axis

With Trump attending, the U.S. may signal a renewed high-level engagement in Southeast Asia and trying to shore up trade and security ties. 

China will engage ASEAN pushing its economic agenda as well as its strategic footprint in the region. 

Russia and some countries will have representation (though the head of state may not attend) and is part of the conversation, especially via its linkages to China and in broader regional security issues. 

5. Other Cross-Cutting issues

Myanmar’s ongoing crisis remains a thorn in ASEAN’s unity and credibility; how the bloc deals with it will come up. 

Technology, cyber security and supply-chain issues: China has urged the U.S. to stop cyber-attacks; ASEAN will be mindful of technological dependencies and the “new economy” challenges. 

Environmental, “green economy” and “sustainability” framing (the theme of the summit is “Inclusivity and Sustainability”) though less emphasised in media, it provides an entry for ASEAN to project a positive agenda. 

6. WHAT TO WATCH

• Trade deal/announcements: Will the U.S. (with Trump) clinch new trade arrangements with ASEAN-members or announce tariff/market-access concessions? Media say yes.

• China-ASEAN FTA 3.0 implementation: Will there be formal commitment, timeline or institutional mechanism announced around the upgraded China-ASEAN free trade area? 

• Cease-fire or peace deal: Particularly the Thailand-Cambodia frontier conflict is expected to be addressed or formalised at the summit in presence of Trump via signing of Peace Deal. 

• Gaza - although President Trump has mentioned the ceasefire, it remains uncertain how extensively the issue will be discussed during the summit, as Palestine continues to face attacks despite the declared truce.

• Language on big-power rivalry: Expect statements around strategic autonomy, neutrality or how ASEAN will engage U.S., China, Russia without being drawn fully into one camp. The “space for neutrality” comment is telling.

• Commitments on supply-chain/green economy: Possibly new mechanisms or commitments to diversify supply chains, strengthen green/digital economy cooperation across ASEAN + China partners.

• Membership expansion and institutional developments: Timor-Leste’s entry, perhaps proposals about expanding ASEAN’s partnership footprint, may get spotlight.

7. Implications for Malaysia and ASEAN

For Malaysia (host): It means being centre-stage in regional diplomacy, enhancing its role as mediator and regional convenor.

For ASEAN's credibility: It’s a test of how the bloc navigates big-power competition while keeping its centrality intact.

For business/investment: Outcomes in trade and supply-chains could open new opportunities (or risks) for Malaysian and regional companies.

For security and geopolitics: How ASEAN positions itself vis-a-vis strategic competition (U.S.–China–Russia) will influence regional alignments for years.

8. Conclusion

The 2025 ASEAN Summit stands as a pivotal moment for Southeast Asia a region navigating the complex intersection of global power rivalries, economic realignments, and enduring humanitarian crises. 

With the presence of the United States under President Trump, alongside China and Russia, ASEAN faces the challenge of asserting its centrality while maintaining neutrality amid competing global interests. 

Yet, within this delicate balance lies opportunity: to strengthen internal cohesion, champion sustainable and inclusive growth, and reaffirm ASEAN’s role as a stabilizing force in an uncertain world. Whether through renewed trade cooperation, conflict resolution, or humanitarian advocacy, the summit’s true test will be how effectively ASEAN transforms dialogue into decisive, collective action for the peace, prosperity, and resilience of the region and beyond.

At the same time, I sincerely hope that the peaceful protests surrounding President Trump’s visit to Malaysia will not be met with penalties or suppression. In a true democracy, the right to express dissent is fundamental provided it remains orderly and non-violent. Many Malaysians, including the opposition and silent citizens alike, deserve the space to voice their concerns. Such demonstrations should not be seen as acts of hostility, but rather as a necessary form of check and balance one that reflects the maturity, integrity, and strength of Malaysia’s democratic spirit.

The Algorithm Is a Strategy not Your Enemy (Overview by Nik Zafri)

In the fast-paced world of digital marketing, algorithms don’t just decide who sees your content - they reflect how well you understand your audience. Every scroll, click, and linger tells a story.

In this new age, the word “algorithm” often sparks mixed emotions, fascination, frustration, and sometimes fear. Yet, behind every algorithm lies a simple truth - it’s not out to defeat us, but to understand us. Every post, click, and comment forms part of an intelligent feedback loop that rewards consistency, authenticity, and engagement.

For new-generation marketers, this means success isn’t about chasing trends or hacking visibility it’s about mastering the language of algorithms. When you treat them as your partners, not your adversaries, data turns into direction and analytics evolve into strategy.

New-gen marketers should also know that they should no longer fighting the algorithm, but feeding it the right signals - authenticity, engagement, and consistency. Whether it’s Google’s ranking logic, TikTok’s “For You” magic, or Meta’s engagement web, the real question isn’t “How do I beat it?” but “How do I work with it?”

Remember this 3 principles :

• Create for people, optimize for algorithms,

• Watch patterns, not platforms. Algorithms evolve, your strategy should too,

• Use data as intuition’s best friend. Let analytics shape creativity, not replace it.

The marketers of tomorrow won’t chase trends, they’ll understand systems.

Here's a simple example : 

The following shows how algorithms, data, and marketing tie together,  something new-gen marketers can see, analyze, and learn from.

Below is a sample dataset and Python snippet showing how marketers can use meta-data and algorithms to understand which content performs best on a website or social platform.

Another Example Algorithm (Python)

Let’s simulate a simple engagement score algorithm, how marketers could rank their posts by performance using weighted engagement.

What this does:

• Assigns weights (likes 30%, shares 40%, comments 30%),

• Multiplies total engagement by conversion rate, and

• Ranks which platform’s content gives the best return

Why New Age Marketers Should Love This

• It mixes creativity with data, storytelling backed by analytics,

• Shows how algorithms learn from engagement signals (just like social media platforms do), and

• Teaches marketers to interpret trends, not just follow them.

Another simple example : 

Run a small simulation in Python where I ranked content performance across social platforms using a weighted engagement algorithm:

engagement_score = (likes*0.3 + shares*0.4 + comments*0.3) * conversion_rate

Result?

TikTok and YouTube rise into a comfortable position - not just because of virality, but because they converted engagement into real outcomes.

Remember :

The future of marketing belongs to those who can bridge creativity and computation - storytellers who speak in both emotion and metrics. Algorithms will continue to evolve, but their purpose remains the same: to amplify what truly connects people.

So instead of asking, 

“How do I beat the algorithm?”, 

the real question should be, 

“How do I make the algorithm work with me?”

After all, the smartest marketers don’t fight the system - they understand it.

WANT TO INVEST IN BURSA? HUMBLE GUIDE BY NIK ZAFRI

Disclaimer : I am not a share expert and I gave up my license a long time ago. What I’m sharing here is purely based on my personal experience and observation. It may not suit everyone’s risk appetite or investment goals, so please treat this only as an unqualified personal guide, not professional financial advice. Always do your own research or consult a licensed investment adviser before making decisions.

Before investing a single sen, get familiar with how the stock market works.

Bursa Malaysia is the main stock exchange in Malaysia. It’s where public companies list their shares, and investors buy/sell them.

1) When you buy share

It means that you own a small part of that company. You can profit in two ways:

• Capital gain : buying low and selling high,
• Dividends : regular payments from the company’s profits (many Malaysian companies are good dividend payers).

2) Open a CDS and Trading Account

a) To invest, you must have:

• Central Depository System (CDS) Account (managed by Bursa Malaysia),
• Trading Account (with a stockbroker or bank)

b) How to open:

Choose a broker (examples: Maybank , CIMB , RHB, Hong Leong Bank Berhad , or online platforms like Rakuten Trade  or M+ Online),

• Submit your IC and supporting documents,
• Fund your trading account (some start as low as RM100)

Rakuten Trade and MIDF Invest are good for beginners - based on my own experience, they’re user-friendly and low-cost.

3) Learn the Different Types of Stocks

Generally, Malaysian stocks can be grouped into:

• Blue Chips: Big, stable companies (e.g. Maybank, PETRONAS Chemicals Group Berhad (PCG), Tenaga Nasional Berhad ) – lower risk, steady dividends.
• Growth Stocks: Smaller or mid-sized companies with potential to grow fast (e.g. tech, healthcare) – higher risk, higher reward.
• Dividend Stocks: Companies that consistently pay dividends (e.g. REITs, utilities, telcos).
• Speculative/Penny Stocks: Cheap, volatile, high risk - avoid until you have experience.

4) Study Before You Buy

Wise investors look at both fundamental and technical factors.

4.1 Fundamental analysis : Earnings per share (EPS), Price-to-earnings ratio (P/E), Dividend yield, company management and business model, Industry trends

4.2 Technical analysis: Price charts (candlesticks), support and resistance, volume trends.

For beginners, focus more on fundamentals first! Learn to value a business, not just its share price.

5) Build a Small, Safe Portfolio

Start small : say RM500–RM1,000 per month.

This way, you’re not putting all your eggs in one basket.

6) Be Patient and Think Long-Term

Stock investing is not gambling.

The “wise choice” is:

• Investing in strong companies with good track records.
• Holding long enough for compounding to work.
• Reinvesting dividends.

Avoiding panic selling when the market dips.

You may not get rich overnight, but in 5–10 years, consistent and disciplined investing can grow your wealth significantly.

7.0 Keep Learning

Here are some tips and recommended resources:

• Bursa Academy (free online learning by Bursa Malaysia),
• InvestSmart by SC Malaysia

Some of the books that I've read:

• The Intelligent Investor (Benjamin Graham)
• One Up on Wall Street (Peter Lynch)

8.0 “Wise” Start

Let’s say you invest RM1,000 in Maybank at RM8.80 per share.

Annual dividend yield ≈ 6% → RM60 a year. If price rises to RM9.50, you gain ~8% in capital. Total gain ≈ 14% = RM140 (Yes, it's not big, but it's steady and definitely low risk).

Do that every month, and in 5 years you’ll have built a portfolio worth many thousands even more with reinvested dividends.

9.0 SIMULATED PORTFOLIO

Here's an example of simulated portfolio with low risk and expected annual return, based on your monthly budget and risk appetite

Let's assume RM1,000/month, moderate risk, and short-term (1–2 years).

That means your goal is to make steady gains without too much exposure to volatility - something practical and realistic for Bursa Malaysia .

Here’s a smart short-term portfolio simulation designed around those parameters.

9.1 Bursa Malaysia Stock Investment Plan (Moderate, Short-Term)

Monthly Investment = RM1,000/month. Time Frame = 12–24 months

a) Portfolio Allocation

b) Expected Performance (Estimates for 1–2 Years)

This may sound modest, but for short-term investing, it’s realistic and protects your capital while letting you learn market behaviour.

10.0 Strategy and Tips

• Use Dollar-Cost Averaging (DCA):

Invest RM1,000 every month regardless of price. This smooths out volatility.

• Monitor Quarterly Results:

Keep an eye on companies’ QRs (Quarterly Reports) - if profits drop for 2 straight quarters, reconsider holding.

• Set a Profit Target:

Aim to sell if a stock rises 10–15% within 6–12 months. Don’t get greedy - short-term means locking in profits wisely.

• Reinvest Dividends:

Even short-term, reinvesting dividends increases compounding effect.

• Avoid Chasing Hype:

Stay away from “goreng” or speculative counters unless you can afford the loss. Stick with sound fundamentals.

Let’s say you start with:

RM400 → Maybank (RM8.80/share)

RM250 → IGB REIT (RM1.80/share)

RM250 → Inari (RM3.00/share)

RM100 → kept as cash

After one year:

Maybank rises to RM9.30 (+6%) and pays 6% dividend → 12% total gain

IGB REIT pays 5% dividend, price stable → 5% gain

Inari rises 15% → 15% gain

Average total gain ≈ 10% (RM1,200 → RM1,320)

If reinvested monthly, your annual profit could reach RM800–RM1,000, not huge but safe and smart.

10.0 Your Simulated 12-Month Investment Roadmap

Here’s your 12-month Bursa Malaysia Stock Investment Roadmap - tailored for RM1,000/month, moderate risk, and a short-term horizon (1–2 years). 

(Total target investment: RM12,000)

This plan balances steady growth, dividend income, and learning experience without overexposing you to market risk.

a) Portfolio Mix at Year-End

b) Expected Return (Short-Term Estimate) 

c) Rebalancing and Exit Plan

• Rebalance every 6 months (or when a stock gains/loses >15%)
• Lock in profit when a counter exceeds +10–15%, then reinvest elsewhere.
• Cut loss if a company falls >10% and fundamentals worsen (check quarterly results).
• If market dips sharply but fundamentals remain intact → buy more (average down).

11.0 CONCLUSION

Investing in Bursa Malaysia can be both rewarding and educational when approached with patience, discipline, and a clear strategy. Even with a modest monthly commitment, wise investors can gradually build wealth through sound stock selection, consistent monitoring, and reinvestment of returns. While short-term profits are possible, the real value lies in understanding market behaviour and making informed choices rather than chasing quick gains.

Remember; as stated in the disclaimer ; this guide is not professional financial advice, but a reflection of personal experience. Every investor’s journey is unique, so always do your own research and invest only what you can afford to hold. The key is not to predict the market, but to prepare and participate in it wisely.

Malaysia’s Fiscal Balancing Act: The Interplay Between FDI, Debt, and Deficit (2023–2025) - Overview by Nik Zafri

Disclaimer: The information presented in this article is compiled from various public domain sources and reflects the personal views and interpretation of the author. While every effort has been made to ensure accuracy, readers are advised to consult official publications and expert opinions for decision-making purposes.

NAVIGATING COMPLEX FISCAL LANDSCAPE

Malaysia, like many emerging economies, finds itself at a critical juncture. As the country positions itself as a hub for regional investment, the government must walk a fiscal tightrope, balancing the need to attract Foreign Direct Investment (FDI) while managing a growing national debt and persistent budget deficits.

Much I like to say about the Malaysian economy but In this article, I will attempt to explore briefly how these three financial pillars, FDI, national debt, and the fiscal deficit, interact and shape Malaysia's economic future from 2023 to 2025.

1. Foreign Direct Investment (FDI): A Double-Edged Sword

FDI has long been a cornerstone of Malaysia's development strategy. According to the Malaysian Investment Development Authority (MIDA), the country recorded RM225 billion in approved investments in 2023, of which RM127 billion were foreign investments. Key contributors included major players from the United States, China, Singapore, and Germany, particularly in high-tech manufacturing, green energy, and the digital economy.

In 2024, FDI inflows remained strong with increased interest in semiconductor manufacturing, data centers, and electric vehicle (EV) ecosystems.

However, 2025 presents both opportunities and risks, with global economic uncertainties and geopolitical shifts possibly affecting investor sentiment.

2. National Debt: A Growing Concern

Malaysia’s national debt has steadily increased, reaching RM1.5 trillion by the end of 2024, or approximately 82% of GDP when including contingent liabilities. While much of this debt is domestically held, the rising debt-to-GDP ratio poses risks to the country's credit rating and limits fiscal flexibility.

The government has been actively managing its borrowings, focusing on long-term bonds and sukuk instruments. However, interest payments consume a significant portion of the national budget around 15% in 2024 leaving less room for development spending. Between 2023 and 2024, Malaysia paid approximately RM97 billion in interest payments alone, reflecting the growing burden of debt servicing.

3. Fiscal Deficit: Persistent but Improving

Malaysia's fiscal deficit stood at 5.6% of GDP in 2023, with a slight reduction to 5.0% in 2024. The government aims to lower it further to 4.3% by the end of 2025. Several measures have been introduced to achieve this goal, including subsidy rationalisation, targeted cash assistance, and a possible reintroduction of a broad-based consumption tax like the Goods and Services Tax (GST).

Despite these efforts, challenges remain. A large portion of government expenditure is still dedicated to operational spending, including civil servant salaries and social programs, limiting capital investment.

4. Interconnections: A Delicate Balance

FDI can help reduce fiscal deficits in the long term by boosting economic growth and increasing tax revenues. However, to attract FDI, the government often needs to invest heavily in infrastructure, offer tax incentives, and ensure regulatory stability expenditures that may exacerbate short-term deficits and add to public debt.

Conversely, high debt levels and persistent deficits may erode investor confidence. Agencies like Fitch and Moody's have signaled concerns about Malaysia's fiscal discipline, potentially affecting future FDI inflows.

A key case study is the Digital Free Trade Zone (DFTZ), which has attracted significant investment but required large upfront infrastructure spending. Similarly, mega projects like the East Coast Rail Link (ECRL) have FDI elements but also contribute to rising public debt.

5. Policy Implications and Recommendations

To ensure a sustainable fiscal path while remaining attractive to investors, Malaysia should consider:

• Strengthening tax collection and broadening the tax base.

• Implementing stricter fiscal rules to manage debt accumulation.

• Enhancing public investment efficiency.

• Promoting ESG-compliant and high-value-added FDI.

• Increasing transparency and data-driven policymaking.

Conclusion: Striking the Right Balance

Malaysia’s economic journey from 2023 to 2025 underscores the delicate balancing act between attracting FDI, managing debt, and reducing fiscal deficits. While foreign investments can be a catalyst for growth, they must be aligned with sound fiscal policies to ensure long-term sustainability. With careful planning and bold reforms, Malaysia can chart a path toward economic resilience and fiscal responsibility in an increasingly complex global environment.

Read more :

1. China Retaliation Towards US Tariffs and The Impacts to Both Country/Global Economy

2. US-China Trade Truce: A Strategic Pause or Temporary Relief?

3. Trump’s presidency raises concerns for US investments in Malaysia’s semiconductor, data centre

4. Why BRICS?

5. Data Centers in Malaysia: Purpose, Potential, and Challenges

6. ESG - 3 Parters

7. Urban Intelligence - An Upgrade to Smart City

8. More here