KUALA LUMPUR (Sept 3): Malaysia must provide greater policy certainty to prevent financial markets and business activity from stalling around every electoral cycle, according to former health minister Khairy Jamaluddin.

Khairy highlighted this recurring market caution tied to political transitions during a panel discussion on “Navigating GE16: Malaysia’s Political and Macro-Economic Landscape” at the Foreword KL 2026 investment forum held by AHAM Capital and  Amova Asset Management on Thursday.

The session also featured former international trade and industry deputy minister Dr Ong Kian Ming and The Edge Media Group publisher and group CEO Datuk Ho Kay Tat.

“Every time we get close to an election cycle, the economy grinds to a halt and asset allocation turns cautious. I want Malaysia to be a country where people are not frightened when a general election comes around — that is part of democracy.

"In most developed economies, it does not matter who wins: there is certainty for business, and the institutions are deep and strong enough to withstand the change," Khairy said.

Stressing that Malaysia has solid government-linked investment companies (GLICs), regulators and statutory bodies to provide such continuity, he said "the message we need to send to investors and businesses is that your money is safe and the rules are fixed".

Echoing the sentiment, Ho said investors don’t like flip-flop policies and they want an able government.

"There will always be challenges in the business cycle. But when every other year you have to meet a new minister, or a new government — those are the things investors don’t like. When you invest hundreds of millions, you want the person who approves your investment today to still be the person there tomorrow,” Ho said.

Esther Teo, AHAM Asset Management Bhd deputy managing director and chief fixed income officer, observed that the issue of policy continuity is particularly critical for investors as the 16th general election (GE16) approaches.

“For institutional investors, who wins matters less than knowing which policies will endure regardless of the outcome, and whether Malaysia's standing holds steady through the transition," Teo said.

Beyond policy certainty, Khairy said Malaysia’s economic fundamentals should place the country ahead of where it currently sits in the region.

“We are a country blessed. We have natural resources, we are sheltered from natural disasters, and we are multi-ethnic and multi-religious — that should be an asset. We have multiple engines of growth: oil and gas, electrical and electronics, palm oil, manufacturing, tourism, services.

“Blessed with all of that, we really should be punching above our weight at the highest level in this region. It comes down to leadership, political stability, vision and imagination,” he said.

At the investment forum, Teo also pointed out that Malaysia's economy has continued to show resilience — anchored by steady domestic demand and its growing role in the global technology and semiconductor supply chain — even as global growth moderates and geopolitical tensions weigh on markets elsewhere.

In fact, the country remains one of Southeast Asia’s most compelling long-term growth markets, noted Eleanor Seet, president and head of Asia ex-Japan for Amova Asset Management Asia Ltd.

Against that backdrop, AHAM Asset Management Bhd's deputy head of equity (Malaysia) David Loh said Malaysia's MY Value Up programme — aimed at helping Malaysian public listed companies strengthen their medium- to long-term value and become globally attractive investment propositions — could be a game changer for the country.

Speaking in a separate panel about "Unlocking Value in Local Equities: Regional Value-Up Programmes”, Loh is optimistic on the potential impact of Malaysia's own programme on its benchmark index.

"The process is going to take time, as with all new plans, but if well executed, Value-Up could serve as the catalyst for the KLCI to trade above 2,000 points," he said.

The markets most likely to benefit from such value-up reforms that are being pursued across the region are those where companies follow through with measurable improvements in return on equity, dividends, share buybacks, governance and investor engagement, said Amova Asset Management head of Asian equities Kenneth Tang.

“Value-Up can be a catalyst for a sustained re-rating of Asian equities — but only if it leads to real behavioural change, not just better messaging,” Tang said.

Held as part of AHAM Capital's 25th anniversary celebrations, Foreword KL 2026 brought together over 350 institutional, distribution and wealth partners under the theme "Navigating a Changing World: Geopolitics, Market Transformation & Malaysia's Future" to facilitate the exchange of ideas and strengthen connections among the investment community.

The forum is also AHAM Capital’s first and largest co-branded event with Amova Asset Management since becoming its subsidiary on June 30.

AHAM Capital had roughly RM110 billion in assets under management as at July 31, 2026, while Amova Asset Management managed US$271.5 billion (RM1.1 trillion) as at March 31, 2026.