KUALA LUMPUR (Oct 6): Malaysia needs to ensure the investments it attracts translate into deeper local supply chains, higher-value jobs and greater participation by domestic companies, said UOB Malaysia CEO Datuk Ng Wei Wei.

She said attracting investment is only the first step, with Malaysia needing to strengthen its talent base and local industrial capabilities so more businesses can participate in higher-value activities.

"Attracting investment is only the beginning. The greater opportunity lies in ensuring these investments create broader economic benefit by strengthening supply chains, creating quality jobs and enabling local businesses to participate in higher-value activities," Ng said.

She said Malaysia's approved investments remained resilient at about RM93 billion in the first quarter of 2026.

Since then, the Malaysian Investment Development Authority (Mida) has reported RM218.5 billion in approved investments for the first half of 2026, up 11.7% from a year earlier.

Ng identified three areas that will be important to sustaining Malaysia's competitiveness, namely developing skilled talent, strengthening the local supply chain ecosystem and maintaining a predictable investment environment.

She said the demand for skilled talent, including engineers, technicians and other specialised professionals, has been increasing, underpinned by rapid growth in sectors such as semiconductors, artificial intelligence and digital infrastructure.

A stronger local supply chain is also allowing Malaysian companies to benefit more from foreign investments through technology transfer, talent development and innovation.

Meanwhile, businesses and investors will continue to look for policy consistency, efficient execution and regulatory clarity when making long-term investment decisions.

"Investors value policy consistency, efficient execution and regulatory clarity when making long-term investment decisions".

Ng highlighted Malaysia's existing industrial base as an important advantage, particularly in electrical and electronics (E&E), semiconductors, manufacturing and industrial services. This helps the country create opportunities on the back of global supply chain diversification due to the ongoing US-China trade war and the deglobalisation trend.

Government initiatives, including the New Industrial Master Plan 2030, National Energy Transition Roadmap and National Semiconductor Strategy, also provide a policy framework for future growth.

Coupled with its improved position in the Institute for Management Development's World Competitiveness Ranking 2026, where the country climbed eight places to 15th, this makes Malaysia a compelling destination for companies to set up new bases.

"Against this backdrop, businesses are not choosing between Malaysia and Asean. They are choosing Malaysia as a platform to serve Asean," she said. .

Ng said there can be a significant period between an investment being approved and a project beginning operations. Large projects often require companies to commit capital before operations start, particularly when timelines depend on infrastructure readiness, regulatory approvals and construction schedules.

It is during this period, when companies need to manage liquidity and cash flow while continuing to work towards operational readiness, that UOB Malaysia comes into play.

Ng said UOB provides financing, transaction banking and treasury solutions, while also connecting clients with government agencies and local authorities.

"Through our experience and understanding of the investment landscape, we help clients navigate approval processes more effectively and accelerate their path to operational readiness," she said.

For local small and medium enterprises (SMEs) and mid-sized companies seeking to enter or move higher up the semiconductor and electronics supply chains, UOB provides supply chain financing, trade finance and working capital solutions to help them manage growth, invest in capabilities and meet the requirements of global customers.

Ng said the bank is adapting to an economy where more companies derive their value from intellectual property, technology and talent rather than physical assets.

However, the fundamentals of credit assessment remain unchanged. "While the drivers of value may be changing in a knowledge-based economy, the fundamentals remain the same. Our assessment is ultimately based on the overall viability of the business, its ability to execute its strategy and its growth prospects," she said.

Looking at regions, Ng pointed to the Johor-Singapore Special Economic Zone (JS-SEZ) as a key example of deeper economic integration between Asean countries.

As the JS-SEZ has moved from the planning stage to implementation, UOB has facilitated more than RM20 billion in foreign direct investment flows into the zone since 2024 through its collaborations with Invest Johor, Mida and other stakeholders, up from the more than RM18 billion reported by the bank in April.

However, for the JS-SEZ to work as an integrated economic corridor, businesses need to be able to operate across both markets smoothly, including setting up operations, managing capital and accessing banking services, Ng said.

"The success of the JS-SEZ will depend on how seamlessly businesses can operate across both markets, from setting up operations and managing capital to accessing banking services and growth opportunities".

UOB signed a memorandum of understanding (MOU) with Invest Johor in August 2024 and launched the UOB-Invest Johor Green Lane Initiative in February 2025.

The bank has also introduced a Fast Lane Account Opening service for Singapore-based clients expanding into the JS-SEZ, alongside dedicated foreign direct investment advisory and JS-SEZ desks in Johor and Singapore.

Beyond Johor, Ng said the northern region continues to strengthen its position as an E&E and semiconductor hub, while Selangor remains a major destination for domestic and foreign investment in advanced manufacturing, aerospace and life sciences.

Sarawak, meanwhile, is emerging as a green economic corridor, supported by its land availability, renewable energy resources and policies aimed at attracting green industries.

Energy security is another factor increasingly influencing business decisions, Ng said. Citing the UOB Business Outlook Study 2026, she said three in four businesses view energy security and efficiency as a priority.

Malaysia's position as a net energy exporter, alongside its renewable energy ambitions, should provide confidence for long-term investment decisions, she added.

For SMEs, however, meeting international sustainability requirements can add to the cost of doing business. Ng said companies are increasingly required to improve emissions measurement and reporting, supply chain traceability and certification, while also investing in energy-efficient equipment and renewable energy.

"Beyond investing in energy-efficient equipment or renewable energy solutions, many companies also need to strengthen emissions measurement and reporting, improve supply chain traceability, and meet certification requirements expected by multinational customers and export markets," she said.

Hence, UOB provides sustainable and transition financing, including sustainability-linked financing, under its Sustainable Finance Framework. The bank also connects businesses with solution providers and industry partners through programmes such as the UOB Sustainability Accelerator.

Ng said UOB is also seeing growing interest in Asean, including Malaysia, among high-net-worth individuals and family offices looking to diversify their investments amid an evolving geopolitical environment.

She said succession planning is becoming increasingly important, with an estimated US$6 trillion in wealth expected to be transferred between generations in Asia by 2030.

"This is shaping a more diversified approach to wealth management, with greater emphasis on balancing opportunities across geographies, asset classes and currencies, while managing risk and preserving wealth over the long term" Ng said.