Strong Third Quarter Puts Malaysia On Course To Achieve 4.8%- 5.3% Full-Year Growth

Malaysia’s gross domestic product (GDP) in the third quarter of 2024 (Q3 2024) expanded by 5.3% (Q2 2024: 5.9%), buoyed by a resilient domestic demand and a further recovery in performance of the external sector. The Q3 2024 performance was in line with the Department of Statistics (DOSM) advance estimate released earlier.

The robust performance in Q3 2024 brought Malaysia’s economic growth for the first nine months of 2024 to 5.2%, compared to 3.8% growth for the same period last year. This puts the country on the right track towards achieving the Government’s official forecast range of 4.8% to 5.3%, which was revised higher from the initial estimate of between 4% and 5%.

“Exceeding 5% growth for the first nine months of 2024 is a reflection of both business and consumer confidence with the Malaysian economy and the Government’s economic management. The MADANI Government remains steadfast in its reform agenda to strengthen governance and economic transformation as laid out in the Ekonomi MADANI framework. Staying the course on reforms is reflected in our 2025 Budget, whereby the Government continues to strengthen fiscal management by reducing the fiscal deficit, expand our revenue base, and further optimise on Government expenditure including through targeted subsidies on fuel. The 2025 Budget balances fiscal responsibility with an expansionary fiscal stance and public investment, to support the robust growth momentum going forward,” said Prime Minister and Finance Minister YAB Dato’ Seri Anwar Ibrahim.

“In spite of global turbulence and uncertainties, Malaysia’s fundamentals continue to gain momentum, growing from strength to strength. This solid footing positions us well to close out 2024 on an ebullient note, as we advance essential economic reforms to elevate Malaysia’s economic stature and complexity,” he added

Budget 2025 to reinforce Malaysia’s fundamentals and accelerate Ekonomi MADANI’s vision

While Malaysia’s status as a highly open economy exposes the nation to the vulnerabilities arising from the fraught nature of global geopolitics and economy, YAB Dato’ Seri Anwar said the MADANI Government remains optimistic about the country’s outlook. He emphasised that the Ekonomi MADANI framework clearly charts Malaysia’s trajectory to enhancing her value in the global supply chain, all while achieving economic security plus sustainability.

“The Government believes that opportunities can arise even in times of chaos, and that a resurgent Malaysia is well-positioned to capitalise on the increasing adoption of the Plus-One strategy. Malaysia’s efforts to strengthen and renew bilateral and multilateral cooperation, while maintaining its non-aligned stance, will yield benefits through enhanced trade and a broader export footprint,” he added.

Furthermore, with the allocation of RM421 billion, Budget 2025 is set to drive fiscal and economic reforms, prioritising quality investments that will generate higher-income jobs and enhance public services and infrastructure to elevate the living standards of the rakyat. The development expenditure of RM86 billion is also boosted by private-finance initiative (PFI) projects valued at RM9 billion and domestic direct investments (DDI) by Government-linked Investment Companies (GLIC) worth RM25 billion. In total, the cumulative public investment for the purpose of development in 2025 comes to RM120 billion.

The launch of the Public-Private Partnership Master Plan 2030 (PIKAS 2030) in September 2024 is expected to increase private investments by RM78 billion and generate 900,000 employment opportunities by 2030.

In addition, the Government has taken firm and gradual measures aimed at narrowing the deficit from 5% in 2023 to 4.3% in 2024, and further to 3.8% in 2025, signalling commitment to long-term financial sustainability. The Government remains resolute in ensuring the continuous implementation of pragmatic measures and initiatives to reinforce the country’s economic fundamentals, providing a solid foundation to withstand any potential challenges that may threaten economic stability.