KUALA LUMPUR, 22 FEBRUARY 2024: The government is optimistic that the trade and investment targets set for this year are achievable despite the ringgit’s current depreciation versus the US dollar, as many other major fundamentals remain attractive and appealing to global investors.

Investment, Trade and Industry Minister Tengku Datuk Seri Zafrul Abdul Aziz said investors would look at the long-term outlook and fundamentals in making their decisions.

“Ringgit is one of the major factors. They want to see the stability of the ringgit, and I think we are within the stable range,” he told reporters after launching BYD Malaysia’s latest electric vehicle marque, BYD SEAL.

Tengku Zafrul said investors would usually take between six months and up to one year to decide on their investments, and up to two years to set up their factories in the respective countries, therefore they would not look at currency fluctuations too much.

Investments are important for economic growth, he said, noting that investments currently account for approximately 22% of national gross domestic product (GDP).

“To make investments one of the key engines of growth, we need to double the amount. When the percentage of investment to GDP increases, it will boost Malaysia's economic growth.

“We can't just depend on consumption and government spending," he said.

Tengku Zafrul added that the government is looking at a 5% growth in trade this year, slightly higher than 3% global trade growth projected by the World Trade Organization.