Economy Could Grow by 6% this Year, Says Economist
Malaysia’s GDP Projected to Expand by Up to 6%
Malaysia’s economy is poised to maintain its momentum into 2025 with the gross domestic product (GDP) projected to expand by up to 6%, says an economist. Juwai IQI global chief economist Shan Saeed opined that Malaysia’s GDP could grow by 5-6% this year assuming consumption and investment patterns remain strong, thus driving macroeconomic stability.
Strong Domestic Consumption and Exports
Shan applauded the government’s proactive move to boost foreign and domestic investment and said Malaysia was fast becoming a regional data centre and technological hub on top of a successful semiconductor ecosystem. “Local investors’ confidence is also very strong, and that is why we are able to attract foreign direct investment (FDI) to the country,” he told the national news agency.
Private Consumption and Investment
Private consumption and investment collectively contribute over 80% to the nation’s GDP. Other economists agreed that despite global uncertainties, Malaysia has a positive economic outlook in 2025 due to strong domestic consumption, increased exports, and its growing role as an investment hub.
Government Support and Fiscal Policies
Malaysian Economic Association president Yeah Kim Leng said sustained consumer confidence, underpinned by rising incomes, low unemployment, and targeted government income support, will fuel private consumption. “At the same time, robust private investment, which expanded by an impressive 12.1% in the first three quarters of 2024, is expected to remain a formidable growth driver,” he said.
Bank Muamalat Malaysia Bhd chief economist Afzanizam Rashid said continuous expansionary fiscal policies would lead to increased government expenditure and private sector spending. Afzanizam said that while consumer spending is expected to maintain a positive trajectory, they would likely be more judicious given the elevated cost of living.
Global Economic Outlook
Globally, the economy is expected to grow by 3.2% in 2025, while Asean growth is forecast to be at a robust 4.7% thanks to export opportunities generated by Chinese and US tariffs. The International Monetary Fund (IMF) forecasted Malaysia’s GDP to grow by 4.8% in 2024 and 4.4% in 2025.
Conclusion
In conclusion, Malaysia’s economy is expected to maintain its momentum into 2025 with a projected GDP growth of up to 6%. Strong domestic consumption, increased exports, and its growing role as an investment hub are expected to drive the country’s economic growth.
FAQs
Q: What is the projected GDP growth rate for Malaysia in 2025?
A: The projected GDP growth rate for Malaysia in 2025 is up to 6%.
Q: What are the key drivers of Malaysia’s economic growth?
A: Strong domestic consumption, increased exports, and its growing role as an investment hub are expected to drive Malaysia’s economic growth.
Q: What is the global economic outlook for 2025?
A: The global economy is expected to grow by 3.2% in 2025, while Asean growth is forecast to be at a robust 4.7%.
Q: What is the IMF’s forecast for Malaysia’s GDP growth in 2024 and 2025?
A: The IMF forecasted Malaysia’s GDP to grow by 4.8% in 2024 and 4.4% in 2025.