Malaysian firms revive capex after years of caution, signalling investment rebound
Malaysian corporates are reviving capital expenditure plans after years of caution, with early indicators pointing to renewed spending across manufacturing, telecommunications, oil and gas, construction and property.
Source: The Star · July 25, 2026 at 1:01 AM · AI-assisted report
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KUALA LUMPUR, 25 JULY 2026 —
Malaysian corporates are reviving capital expenditure plans after years of caution, with early indicators pointing to renewed spending across manufacturing, telecommunications, oil and gas, construction and property.
Market Impact
The shift follows the lifting of pandemic restrictions and suggests a potential turning point for the economy, according to sector filings and company statements.
Manufacturing firms are leading the rebound, with several announcing RM1.2 billion in new plant and machinery investments in the first quarter of 2024, up 18% from the previous three months. Telecommunications companies are allocating RM450 million to expand 5G and fibre optic networks, while oil and gas players are committing RM3.75 billion to upstream projects.
Maybank Investment Banking Group chief economist Suhaimi Ilias said the capex revival reflects improving business confidence and stronger external demand. “The manufacturing uptick is broad-based, from electronics to chemicals, while O&G capex is being driven by both national and international players,” he said.
The construction sector is also benefiting, with property developers increasing site acquisition budgets by 22% quarter-on-quarter. Analysts say the rebound could add 0.8 percentage points to Malaysia’s 2024 GDP growth, though risks remain from global uncertainties and supply chain disruptions.
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