KUALA LUMPUR: Malaysia is set to sustain its robust economic growth into 2025, with the country's gross domestic product (GDP) projected to increase by up to 6%, driven by strong domestic consumption, key export sectors, and its strengthening position as an investment hub.
According to BERNAMA News Agency, Juwai IQI global chief economist Shan Saeed stated that Malaysia's GDP could grow between 5.0% to 6.0%, assuming continued stability in consumption and investment patterns. This growth is anticipated to be fueled by the government's proactive strategies to boost foreign and domestic direct investments, transforming Malaysia into a regional data and technological hub, alongside a thriving semiconductor ecosystem.
Domestic investor confidence is reportedly high, further attracting foreign direct investment (FDI) to the nation. Private consumption and dynamic private investment are significant contributors, collectively accounting for over 80% of the GDP. Prof Dr Yeah Kim Leng, a senior fellow at the Jeffrey Cheah Institute on Southeast Asia, emphasized the role of sustained consumer confidence, underpinned by rising incomes and low unemployment, in driving private consumption.
Yeah also highlighted the impressive expansion of private investment, which grew by 12.1% in the first three quarters of 2024, as a formidable growth driver. He noted Malaysia's proactive measures to counter external challenges such as inflationary pressures and supply chain disruptions.
Bank Muamalat Malaysia Bhd chief economist Mohd Afzanizam Abdul Rashid pointed to continuous expansionary fiscal policies and supportive global conditions, such as interest rate cuts in major economies, as factors that will sustain Malaysia's export growth and overall economic momentum.
The International Monetary Fund (IMF) has forecast Malaysia's real GDP to grow by 4.8% this year, with a stable projection of 4.4% growth in 2025. Meanwhile, Malaysia's GDP for the first nine months of 2024 reported a growth of 5.2%, compared to 3.8% in the same period the previous year.
In addition to economic growth, Malaysia's upcoming ASEAN chairmanship is viewed as an opportunity to enhance its global standing. Yeah, who is also the president of the Malaysian Economic Association, noted the potential of landmark projects and regional trade agreements to attract substantial investments and bolster trade resilience.
Despite the optimistic outlook, challenges such as geopolitical tensions in the region persist. Yeah underscored the importance of maintaining ASEAN's unity amid intensifying global rivalries, emphasizing the need for Malaysia to foster constructive dialogue to safeguard regional cohesion.
Shan Saeed concluded with an expectation that Malaysia will continue to benefit from global corporate movements, such as the repositioning of Chinese companies to ASEAN nations, further solidifying its role in driving regional economic growth.