Qualampur: In 2024, the Malaysian economy increased by 5.1 percent, which increased from 3.6 percent in 2023 to 4.8 percent to 5.3 percent year-long with the government’s target.
In a statement today, Bank Negara Malaysia (BNM) stated that the growth is mainly due to continuous expansion in domestic demand and a reversal in exports.
On the domestic front, development was mainly powered by strong domestic expenses, reflecting favorable labor market conditions, according to the central bank, policy measures to support homes and healthy domestic balance sheets.
“In addition, strong investment approval and further progress of multi-year projects by private and public sectors-National Master Plans such as new industrial master plans, national energy transition roadmap and catalytic initiative under the National Semi-Affairs Strategy Further inspiration for growth, ”BNM said.
On the outer front, exports were recovered between stable global development, a continuous technique, apostacle and higher tourist arrival and expenses.
These support the current account, giving a continuous surplus of 1.7 percent of the GDP (1.5 percent in 2023) in 2024.
For the fourth quarter of 2024 (4Q 2024), GDP expanded 5.0 percent (3Q 2024: 5.4 percent), mainly operated with domestic demand.
The Central Bank said that strong investment activity was underlined by the continuous achievement of new and existing projects.
“Domestic expenses were maintained amidst positive labor market conditions and continuous policy assistance.
“In the outer region, the export of goods and services continued to extend, while the increase in capital and intermediate imports was conducted,” it said.
On the supply side, BNM stated that the development service was motivated in detail, in which support from both consumer and business-related sub-sector increased.
The manufacturing sector was supported by Electrical and Electronics (E&A) and primary-related groups, while the construction sector continued to record the growth of double digits with strong activities in residential, non-residential and special trade sub-sector.
However, the growth in the commodity sector was weighed by the production of low oil palm production and continuous decline in oil production.
Seasonally adjusted, based on quarter-on-quarters, growth declined by 1.1 percent (3Q 2024: +1.9 percent).
BNM Governor Datuk Seri Abdul Rashid Gafore said: “While the global environment can be challenging, the growth of the Malaysian economy will be motivated in detail in investment activity, flexible domestic expenses and exports supported by Malaysia’s strong economic fundamental. “
On the domestic front, BNM stated that investment activities would be inspired by favorable progress of multi-year projects in both private and public sectors. These will be further removed by the receipt of approved investments.
It states that domestic expenses will benefit from continuous support through employment and wage growth, as well as government policy measures.
“This includes the minimum wage and amendment of the civil servant salary upwards,” BNM said.
On the outer front, the Central Bank said that the ongoing global technology is expected to continuously increase inaccurate, non-electrical, and electronics products, and to raise exports from higher tourist expenses.
Growth outlook is subject to negative risks, such as an economic recession in major trading partners, rising risk of trade and investment restrictions, and the minimum-to-adapt commodity production.
Nevertheless, more spillover than potentially reverse for development, more strong tourist activities and rapid implementation of investment projects are involved in rapid implementation.
