Joel William is about to begin a feasibility study for a Chinese client weighing a chemical plant in Sarawak, Malaysia’s biggest state on the northern coast of Borneo.

Just two years ago, the manufacturer, whose products are used in chip production, had planned to build the factory in the Middle East after securing funding there. The conflict in Iran upended those plans, sending the project to Malaysia instead, drawn by the country’s established industrial base and relatively stable political environment.

“Clients are doubling down on their capacity” as investments pour into sectors from semiconductors to medical devices, said William, founder of engineering consultancy Medhini Group. “Malaysia is seen as a neutral country.”