Assignment-challenge and recommendation new policy

Economic challenge faced by Malaysia economy is Foreign Direct Investment (FDI).

MALAYSIA must rise on the agenda of investors to attract quality foreign direct investment
(FDI) in a highly competitive and uncertain global investment landscape. FDI is infusing
capital in the domestic economy, providing access to overseas markets, technology, and
expertise.

Malaysia will implement some facilities in FDI like The National Investment Commission
(MPN) has agreed to improve the country's Investment Promotion Agency (IPA) ecosystem
by implementing an initiative to ensure Malaysia is able to optimise existing resources and
deliver effective services. This investment promotion activity will begin under the IPA
functions and roles. Overall, the Government will use policies and strategies that will
strengthen the investment ecosystem and promote investment activities to continue to drive
Malaysia's economic growth.

Policy maker can establish an IPA ecosystem such as enhance IPA coordination that
consolidates the efforts of various agencies involved in investment promotion. After that
policy maker developed industry-specific economic zones to attract investments in key
industries. For example, some key zones technology and Innovation zones and export
processing zones.

Second，with foreign direct investment (FDI) in Malaysia expected to grow more strongly
due to the "friend-shoring" policy promoted by the US government and Malaysia Prime
Minister Datuk Seri Anwar Ibrahim's initiatives to enhance investment facilitation in
Malaysia, the prospect of greater private and foreign direct investment (FDI) inflows is one
of the reasons for the upward revision of the 12th Malaysia Plan growth target. This is
because meetings with top corporate leaders and investors in the United States have helped
boost confidence in Malaysia as a conducive investment destination and rebuild an
international reputation tarnished by the 1MDB scandal. So, this move can successfully
highlight Malaysia's position on global issues and also raise its profile on the international
stage. Through these meetings, Anwar share his experience like large-scale investment not
only expands the domestic supply chain, benefiting both large and small enterprises, but also
creates a 'signal' and 'pull' effect on investment in the rest of the economy."
Policy makers implement investor-friendly regulatory reforms with US government to collaborate
friend-shoring to create a more investor-friendly environment. For example, key components such as
bilateral Investment Treaties, joint investment promotion initiatives and regulatory harmonization.