Kuala Lumpur – Tengku Datuk Seri Zafrul Abdul Aziz has been appointed Chairman of the Malaysian Investment Development Authority (MIDA), effective December 3, 2025, Prime Minister Anwar Ibrahim announced today. The appointment comes after Zafrul concluded his three-year tenure as Minister of Investment, Trade and Industry on December 2, 2025.
During his time as MITI Minister, Zafrul oversaw record-breaking levels of approved investments in Malaysia. The country secured RM329.5 billion in 2023, followed by RM378.5 billion in 2024 – the highest investment figures in the nation’s history. In the first nine months of 2025, Malaysia attracted RM285.2 billion in approved investments, representing a 13.2% year-on-year increase despite global economic headwinds, according to MIDA.
Zafrul spearheaded the development of the New Industrial Master Plan (NIMP) 2030, the National Semiconductor Strategy, the Green Investment Strategy, the Chemical Industry Roadmap, the ESG Industry Framework and the Circular Economy Policy Framework. He also successfully concluded the Malaysia – US Reciprocal Trade Agreement.
The appointment is viewed as a strategic move to bolster Malaysia’s investment promotion capabilities amidst increasing global economic competition. Zafrul brings a combined background in financial services and government policy to the role. Prior to his position at MITI, he served as Minister of Finance from August 30, 2021, to November 24, 2022, and held the position of Coordinating Minister of the National Recovery Plan from July 9, 2021, to August 16, 2021.
However, broader analysis of Malaysia’s economic performance suggests persistent challenges despite successive development plans focused on tech-led growth and digitalization. Manufacturing’s share of GDP has declined from a peak of 31% in 1999 to 23% in 2024. Total factor productivity and labor productivity growth have also stagnated over the past decade. Concerns remain regarding the quality of education and a reliance on low-skill foreign labor, leading to underemployment among Malaysians.
A significant brain drain continues to impact the country, with skilled Malaysians seeking opportunities abroad. Corporate earnings have not shown substantial growth, limiting the capacity of Bursa Malaysia to effectively raise capital. Despite consistent current account surpluses exceeding 2% of GDP, domestic investment remains heavily reliant on foreign direct investment (FDI), which often lacks depth and fails to generate substantial research and development, technological transfer, or intellectual property creation within Malaysia.
While Malaysia is gaining popularity as a holiday destination, exceeding pre-pandemic visitor numbers, and possesses potential in medical and education tourism, the long-term economic strategy hinges on addressing structural issues related to technological dependence, limited intellectual property, lack of market scale, and competition from countries like China and Vietnam.
Zafrul’s appointment as MIDA Chairman comes as the agency seeks to attract capital investments for technology, which require “risk equity capital” financing rather than traditional bank loans. The effectiveness of MIDA under his leadership in addressing these challenges remains to be seen.
