Malaysia Secures RM8.54 Billion BRICS Investments in 1Q 2025

Malaysia’s participation in BRICS — the economic bloc comprising Brazil, Russia, India, China, and South Africa, with newer partners such as the UAE — is already paying dividends. In the first quarter of 2025, Malaysia recorded RM8.54 billion in approved investments from BRICS countries, according to the Ministry of Investment, Trade and Industry (MITI).

The data, based on “ultimate sources,” underscores rising investor confidence in Malaysia as a newly accepted BRICS partner country.

Breakdown of BRICS Investments in Malaysia

MITI confirmed that most of the inflows came from China, India, the United Arab Emirates, and South Africa, with investments spanning manufacturing and services sectors.

Strategic Significance of BRICS Participation

MITI described Malaysia’s BRICS membership as a major advantage, offering:

Recognition as a Progressive Nation
Being part of BRICS elevates Malaysia’s global standing as a principled, progressive economy.
New Market Access
Stronger ties with BRICS economies open up access to the Global South, beyond Malaysia’s traditional trade partners.
Balanced Global Role
BRICS membership positions Malaysia to push for a fairer and more balanced global financial and trade system.
Investor Confidence
Malaysia’s inclusion has already boosted confidence among foreign investors, evidenced by the surge in approved projects in just the first quarter of 2025.

Key Sectors Attracting Investment

The investments approved in Q1 2025 showcase clear growth themes:

Green Technology: Solar energy, EV manufacturing, renewable energy infrastructure.
Digital Economy: Data centres, fintech platforms, and ICT infrastructure.
Infrastructure: Transport, logistics hubs, and smart city initiatives.

These sectors align with Malaysia’s long-term development blueprints under the 12th and 13th Malaysia Plans, reinforcing its ambition to become a regional hub for sustainable growth and high-value industries.

Historical Context: Strong Ties with BRICS

Malaysia has enjoyed long-standing ties with BRICS members, particularly China and India.

China: Malaysia’s largest trading partner for over a decade.
India: A major buyer of Malaysian palm oil and an increasingly important investor in digital and IT-related ventures.
UAE: Strategic partnerships in oil, gas, and Islamic finance.
South Africa: Growing trade links, particularly in commodities.

By formalising its status as a BRICS partner in early 2025, Malaysia has signalled its intent to deepen these ties and capture more FDI inflows.

Economic and Job Creation Impact

The RM8.54 billion in 1Q 2025 is expected to support nearly 7,000 jobs across manufacturing and services.

Manufacturing jobs will largely centre on Penang, Johor, and Selangor, Malaysia’s industrial hubs.
Services jobs will focus on ICT, professional services, and tourism-linked ventures in Kuala Lumpur and major urban centres.

This injection of capital and jobs not only supports GDP growth but also has significant spillover effects on real estate and urban development.

Implications for KL Property

For the Kuala Lumpur property market, BRICS-linked investments create several tailwinds:

Demand for Office Space
With more multinationals establishing regional offices, Grade A offices in KL Sentral, TRX, and Merdeka 118 precincts are likely to see higher occupancy and rental growth.
Boost for Residential Demand
The arrival of skilled expatriates and professionals tied to BRICS firms will support demand for luxury condominiums in KLCC, Bangsar, and Mont Kiara, as well as mid-range properties in emerging neighbourhoods.
Infrastructure Synergies
Investments in digital and transport infrastructure often cluster around major urban areas. KL’s MRT3 Circle Line and other upgrades could align with BRICS-backed projects, lifting surrounding property values.
Confidence Signal
The inflows show that foreign investors view Malaysia—and KL in particular—as a safe, growth-oriented market, which helps underpin confidence in property buyers seeking long-term stability.

Penang, Johor, and Beyond

Beyond KL, BRICS investments are expected to impact other growth corridors:

Penang: Already a global E&E hub, likely to attract more semiconductor and green tech investments.
Johor: With the Johor–Singapore SEZ and Forest City Special Financial Zone, Johor is poised to benefit from UAE and China-linked investors.
East Malaysia: Resource and infrastructure projects tied to South Africa and India could boost Sabah and Sarawak.

This nationwide distribution ensures that Malaysia’s property and infrastructure markets benefit holistically.

Risks and Considerations

While the numbers are promising, several challenges remain:

Global Economic Uncertainty: External shocks could delay or reduce actual investment flows.
Execution Risks: Ensuring approved investments translate into completed projects is critical.
Policy Consistency: Investors will expect clear, stable policies to sustain confidence post-BRICS entry.

Still, the early momentum suggests Malaysia is moving in the right direction.

Conclusion

Malaysia’s entry into BRICS has already yielded results, with RM8.54 billion in approved investments in Q1 2025, led by China, India, UAE, and South Africa. These inflows not only strengthen confidence in Malaysia’s economic direction but also create jobs, stimulate growth in green tech and digital sectors, and reinforce the appeal of KL property and nationwide real estate markets.

As BRICS deepens Malaysia’s ties with major economies of the Global South, the country is poised to enjoy new opportunities for investment, infrastructure, and property development. For investors, the message is clear: Malaysia’s BRICS membership is a confidence signal, and its urban property markets—especially Kuala Lumpur—stand to gain significantly from this global pivot.