Export, domestic consumption recovery bolsters Malaysia’s economic growth

The Malaysian economy is projected to grow 4-5%, supported by export recovery and resilient domestic demand, according to Finance Minister II Datuk Seri Amir Hamzah Azizan.

He said the economic expansion of 4.2% in Q1 showed the efficiency of the Government’s economic management policies.

"Trade recovery will be underpinned by the global technology upcycle and further recovery in tourism activity, while household spending will be underpinned by improving income and employment," the finance minister said.

Investment activities will be driven by further progress of multi-year investment projects by both the public and private sectors, he noted, adding the implementation of catalytic initiatives under various master plans such as the National Energy Transition Roadmap (NETR), New Industrial Master Plan 2030 (NIMP 2030), and the 12th Malaysia Plan would further boost investment.

The government is committed to delivering a meaningful structural reform because it is necessary to build a more prosperous and inclusive Malaysia, he said. "This includes raising the floor by creating more fiscal space and making the economic pie bigger for more participation, raising the ceiling by enhancing social protection, and putting in place good governance."

The minister stressed that the Public Finance and Fiscal Responsibility Act and the Medium-Term Fiscal Framework are crucial measures to broaden and diversify the revenue base.

Malaysia is well-positioned to benefit from reconfiguration of global value chains, he added.