24/09/2025

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WEDNESDAY | SEPT 24, 2025

Asean retains FDI strength despite global uncertainties

Malaysia’s score on data governance under GSMA index improves to 75 KUALA LUMPUR: Malaysia’s score for Robust Data Governance has risen to 75 under the GSMA Digital Nation Index, reflecting strong regulatory frameworks and the government’s firm commitment to protecting data, safeguarding privacy and building public trust, said Deputy Communications Minister Teo Nie Ching. She said the score also underscores Malaysia’s ongoing efforts to create a secure and trusted digital ecosystem. “It is against this backdrop that we turn to the GSMA Digital Nations Asean Report 2025. The report, presented yesterday, identifies key areas for improvement, beginning with digital infrastructure. “Our mobile network operators have laid a strong foundation for innovation, and it is vital that we build on this momentum,”Teo she said in her speech at the Digital Nation Summit Kuala Lumpur (Asean Edition) 2025 here yesterday. Teo noted that the report also recognises Malaysia’s strengths in developing a skilled and adaptable workforce. “Our people are our greatest asset, and in today’s fast changing digital economy, they under stand that learning never stops.” She emphasised that trust forms the cornerstone of any digital nation, and for Asean, building digital trust means ensuring strong data privacy, enhancing cybersecurity, protecting against emerging threats, and fostering an environment where businesses and citizens feel secure to participate. “In Asean, the digital economy is currently valued at around US$300 billion (RM1.26 trillion) and is projected to exceed US$1 trillion by 2030. Asean should harness the transformative power of digital technologies such as artificial intelligence, Internet of Things, Big Data, blockchain and cloud computing towards developing innovative and inclusive, digital communities,” she said.

KUALA LUMPUR: Despite ongoing global uncertainties, Asean has continued to retain its unique strength, attracting robust foreign direct investments (FDI) parti cularly in sectors such as digital isation, sustainable energy, high value manufacturing and financial services. Investment, Trade and Industry Minister Tengku Datuk Seri Zafrul Abdul Aziz said the FDI into Asean rose by 9% in 2024 to US$226 billion (RM949 billion), accounting for 15% of global FDI inflows, hence main taining its position as the top FDI recipient among developing regions for the fourth consecutive year. “With a combined market of over 680 million people and a growing middle class, Asean remains a key driver of global economic growth,” he said in his opening remarks at the 28th Asean Investment Area Council (AIA Council) meeting here yesterday, held in conjunction with

strategic competition among major powers, coupled with supply chain vulnerabilities and shifting trade patterns, has posed challenges and uncertainties for Asean. “These developments could affect capital flows, alter investment decisions and reshape the com parative advantages of our eco nomies,” he said. The 28th AIA Council meeting discussed global and regional eco nomic issues, reviewed Asean’s economic achievements, and ex plored ways to strengthen co operation in support of Asean’s economic integration journey. Held under Malaysia’s 2025 Asean chairmanship, the 57th AEM and related meetings will see a gathering of over 500 delegates from Asean member countries. On a separate matter, Tengku Zafrul said the signing of the Asean Framework Agreement on Com petition (Afac) sends a powerful message to the global community that the grouping is fully committed to fairness, transparency and inte grity in its markets. Tengku Zafrul, who is also the chairperson of the AEM meeting, said the framework agreement also reinforced the bloc’s reputation as a dynamic, trusted and reliable eco nomic partner on the global stage. “As the global economy con tinues to evolve amid com-plexity and uncertainty, Asean’s commit ment to competition policy sends a clear and positive signal - it demonstrates to the world that Asean is ready to uphold the highest standards of governance, business integrity and transparency,” he said. The minister received the Afac document from its negotiation chairperson, Lolibeth Medrano, and then handed the document over to Asean secretary-general Dr Kao Kim Hourn during the commencement of the signing event. – Bernama and enhanced its Centralised Sustainability Intelligence platform with IFRS Scope 1 and Scope 2 reporting modules, accessible at no cost to PLCs. Fad’l added that Bursa has partnered with industry players to scale decarbonisation measurement and introduced capacity-building initiatives such as the Chairperson’s Circle and the Mandatory Accredi tation Programme to equip directors with governance and sustainability skills. “Together through regulatory guidance, professional excellence and industry collaboration, we can build institutions that are ethical, resilient and globally competitive,” he con cluded.

o Tengku Zafrul urges member states to strengthen collaboration and reaffirm commitment to position region as attractive investment destination

their collaboration and reaffirm their commitment to position the region as an attractive investment destination. He said the AIA framework has played a key role in facilitating Asean’s deeper economic inte gration by facilitating the seamless flow of investments, enhancing transparency and promoting a pre dictable and competitive business environment. However, he acknowledged the growing challenges faced by the region. “Today, we meet against a very complex backdrop in terms of the global landscape, where

the 57th Asean Economic Ministers’ Meeting (AEM Meeting) and Related Meetings. At the same time, Tengku Zafrul noted that intra-Asean investment remains modest compared to external inflows. “Strengthening intra-regional investment will not only reinforce our supply chain connectivity but also enhance the resilience of our economies against external shocks,” he said. Calling for deeper regional cooperation, Tengku Zafrul urged Asean member states to strengthen

Tengku Zafrul (seventh, left) poses with Asean economic ministers and Kao (right) before chairing the 57th Asean Economic Ministers’ Meeting and the 28th Asean Investment Area Council meeting at the Malaysia International Trade and Exhibition Centre yesterday. – BERNAMAPIC

Highlighting the rise of cyber threats in the region, Teo said these are driven by increased connectivity, advanced tech nologies and Asean’s growing geo-political significance. “Effective cybersecurity requires close cooperation between governments, the private sector and international bodies, focusing on regional strategies and inform ation-sharing mechanisms.”– Bernama Treat board governance as competitive advantage: Bursa CEO

that elevates a company’s ability to compete. Strengthen the narratives that link risk, strategy and capital allocation. Investors reward co herence they can model,”he said in his speech at the launch of the Malaysian Institute of Chartered Secretaries and Administrators’ (Maicsa) annual conference yesterday. Fad’l also called on ecosystem partners to continue collaborating with Bursa Malaysia to ensure governance frameworks are practical and scalable across companies of all sizes. “We welcome Maicsa’s continuous input so that guidance documents and toolkits stay practical and for boardrooms of every size,” he said Bursa Malaysia, he added, will continue working with Maicsa and

100 PLCs climbing to 32.2%. Independent directors account for just over half of all board seats, while 63% of companies ensure their chair men are not members of audit, nomination or remuneration com mittees. Adoption levels are also high, with 30 of the 48 best practices under the Malaysian Code on Corporate Gover nance recording compliance rates above 90%. To support these improvements, Fad’l said, Bursa has invested to provide FTSE ESG ratings for all Main and ACE Market PLCs, giving investors a credible benchmark. Bursa has also aligned listing requirements with the National Sustainability Reporting Framework

other stakeholders to build a culture of trust, transparency and account ability in the market. As Malaysia aspires to rank among the top 25 nations in Transparency International’s CPI by 2033, Fad’l stressed that governance pro fessionals will play a critical role in helping organisations meet global standards. Furthermore, he highlighted pro gress reflected in the Securities Commission Malaysia’s Corporate Governance Monitor 2024, which showed that over 96% of PLCs have adopted sustainability oversight at board and management levels. Women now hold 27% of PLC board positions, up from 12% in 2016, with representation among the top

Ű BY HAYATUN RAZAK sunbiz@thesundaily.com

KUALA LUMPUR: Malaysia’s public listed company (PLC) boards and management have been urged to treat board governance as a com petitive advantage rather than a safeguard against risks. Bursa Malaysia CEO Datuk Fad’l Mohamed said stronger governance is crucial as Malaysia pushes to raise board diversity, enhance sustainability oversight and position itself among the world’s top 25 nations in Transparency International’s Corruption Perceptions Index (CPI) by 2033. “An effective board brings inde pendence of mind, diversity of perspectives and strategic oversight