First on the list of factors cited by Lim was the steady growth of Malaysian economy, driven by domestic and external demand. 

"With growth in 2018 expected to be around 5%, Malaysia will still be one of the fastest growing economies in the region."

Malaysia also benefits from a diversified economy with services accounting for 54.5% of gross domestic product while manufacturing accounts for more than 80% of the country's total exports.

The unemployment rate in Malaysia is low, registering 3.4% in July while private sector wages grew 6.2% in the first half of 2018.

The current account surplus stood at 2.8% of gross national income in the first half of the year and is expected to remain in surplus moving forward. 

"Even more positively, the goods surplus will continue to be supported by a highly competitive and diversified export sector," said Lim. 

With the ringgit being a fully flexible or floating currency, Lim said the curency is able to play a role as a "shock absorber" in times of stress.

"Nevertheless, it is highly important for businesses to recognise that exchange rate adjustments are unavoidable and are ready to manage their currency exposures prudently. 

"In the medium-term, as the Government continues to improve our economic fundamentals, the ringgit will eventually reflect these positive developments."

Malaysia also has an international reserve position of US$104.4bil, which is adequate to facilitate international transaction but represents only a quarter of Malaysia's total external assets.

"Banks and corporations hold three-quarters of Malaysia’s external assets (as at end-2Q 2018: RM1.3 trillion), which can also be drawn upon to meet their external debt obligations (RM740.9 billion), without creating a claim on international reserves. 

"Our financial institutions also remain well-capitalised with sufficient liquidity to support intermediation within the economy," said Lim.

Furthermore, the low inflation rate of 0.8% in June and 1.1% in July will shield Malaysia from any imported inflation caused by the ringgit's decline against the US dollar.

With regards to the US-China trade conflict, Lim said it was a unique investment opportunity for the country as many companies from the two nations, especially large manufacturers,are seeking to site their facilities in Malaysia.

Lim said Malaysians' level of education, quality of hard and soft infrastructure as well as fluency in both English and Chinese presents an advantage over neighbouring countries such as Thailand, Vietnam and Indonesia.

Simultaneously, the country remains a cheaper investment destination than others such as Singapore and Hong Kong.

With regards to the domestic economy, Lim said the Malaysian Institute of Economic Research (MIER)consumer sentiment index reached a 21-year high of 132.9 in July while the MIER business conditions index registered 116.3 points that same month, its highest since 2015. 

https://www.thestar.com.my/business/business-news/2018/09/17/malaysian-economy-supported-by-strong-fundamentals/