ASIATODAY.ID, KUALA LUMPUR – Bank Negara Malaysia announced that the Malaysian economy will grow 5.1 percent in 2024. This is thanks to expanding domestic demand and recovering exports.
According to a press statement from Bank Negara Malaysia, Friday, February 14 2025, this growth was driven by an increase in household spending which reflects good labor market conditions. Then policies that support households, and healthy household financial balances. Added to this are strong investment approvals and further progress of multi-year projects by the private and public sectors. This includes catalytic initiatives under the national master plan, namely the New Industries Master Plan, the National Energy Transition Roadmap and the National Semiconductor Strategy, which provide further impetus to investment growth.
Meanwhile, externally, exports recovered amid stable global growth, a continuing technology cycle and high tourist arrivals and spending. This provides support for the current account, leading to a sustainable surplus of 1.7 percent of Gross Domestic Product in 2024. This is an increase compared to 2023 which was only 1.5 percent, where, in 2023, Malaysia’s economic growth was recorded at 3.6 percent.
Bank Negara Malaysia Governor Dato Seri Abdul Rasheed Ghaffour said going forward, although global conditions could be challenging, Malaysia’s economic growth would be driven by a strong expansion in investment activity. Then, resilient household spending and export expansion are supported by Malaysia’s strong economic fundamentals.
However, he said, the growth outlook remains subject to downside risks. These risks include an economic slowdown in major trading partners amid increasing risks of trade and investment restrictions as well as lower than expected commodity production.
However, he said the potential for increased growth includes greater spillovers from technology cycles. Furthermore, stronger tourism activity and faster implementation of investment projects.
He also estimates that inflation will remain under control in 2025, amid excessive domestic demand. While recently announced domestic policy reforms will contribute to some upward pressure on prices, the overall impact on inflation is expected to be subdued.
However, he said the risk of an increase could arise from larger cascading effects. Among other things, from policies regarding prices on the broader Consumer Price Index. (AT Network)
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