Kuala lumpur: Malaysia is well-positioned to attract even greater passive investment flows by capitalising on the ongoing global shift toward passive investing with continued follow-through in policies and reforms, participants at the Sasana Symposium 2026 were told today. Employees Provident Fund (EPF) chief investment officer Mohamad Hafiz Kassim highlighted that passive investing has overtaken active investing globally in recent years, benefiting markets like Malaysia.
According to BERNAMA News Agency, Mohamad Hafiz indicated that Malaysia's prominence on various fixed income indexes has resulted in more capital being allocated to its fixed income market. He noted the remarkable stability between Malaysian Government Securities (MGS) and US Treasuries, alongside a stable ringgit, as significant factors contributing to this trend.
Passive investment income and cash flows generally stem from investments such as bonds, fixed deposits, and cash management accounts, requiring minimal ongoing involvement. In contrast, active investment income involves regular monitoring and frequent decision-making, such as trading shares or managing portfolios.
CIMB Group's chief executive officer, Chu Kok Wei, echoed Mohammad Hafiz's sentiments, emphasizing that recent geopolitical developments, particularly tensions in West Asia, have created opportunities for Malaysia. He pointed out that some potential competitors in the emerging market indices are not performing well, providing Malaysia a chance to attract more stable international fund flows from passive funds.
HSBC Senior ASEAN Economist director Yun Liu added that Malaysia continues to benefit from the "China Plus One" strategy for foreign direct investment (FDI). Despite challenges such as the energy crisis and new tariffs, Malaysia remains an attractive investment destination due to its strong infrastructure, quality talent pool, and investor-friendly FDI policies.
The speakers at the symposium agreed that Malaysia must maintain consistent policy reforms and execution to sustain its competitiveness and attract long-term investment flows. The reforms introduced over the past years are beginning to show tangible impacts, enhancing Malaysia's appeal as a global investment hub.