In response to concerns raised by several Honourable Members regarding the country’s economic standing, the Press Secretary to Finance Minister II, Siti Nurbaiyah Nadzmi began by addressing the issue of Malaysia’s Gross Domestic Product (GDP) falling short of targets.
Despite a GDP growth of 3.7%, slightly below the anticipated 4%, Siti emphasised that this achievement was commendable given the challenging global economic landscape.
Factors contributing to this performance included slower global trade growth and the rebound effect from the high economic base of 8.7% growth in 2022 following the downturn in 2021 due to the COVID-19 pandemic.
Comparatively, Malaysia’s GDP growth of 3.7% outperformed other economies such as Singapore (1.1%), Thailand (1.9%), the United States (2.5%), the United Kingdom (0.1%), and South Korea (1.4%), Siti said.
She also highlighted strengthening economic fundamentals in the fourth quarter of 2023, including a decrease in unemployment to 3.3%, inflation rate dropping to 1.6%, recovery in export performance, an increase in Manufacturing Purchasing Managers’ Index (PMI), and positive investment prospects, with approved investments reaching a historic high of RM 329.5 billion in 2023.
Looking ahead to 2024, Siti outlined the government’s direction for economic recovery and achieving the GDP target.
During the presentation of the 2024 Budget, the government projected economic growth between 4% to 5%, supported by the IMF’s latest forecast of global trade growth increasing from 0.4% in 2023 to 3.3% in 2024.
Siti expressed confidence in achieving these targets, citing private sector expenditure, initiatives to stimulate private sector growth, and the comprehensive implementation of the MADANI Economic Framework. Government policies such as the Mid-Term Review of the Twelfth Malaysia Plan (RMK-12), the National Energy Transition Roadmap (NETR), and the New Industrial Master Plan (NIMP) 2030 aim to boost investment in new growth sectors and restructure the economy towards higher value-added activities.
Under the 2024 Budget, the government allocated RM 2 billion for the National Energy Transition Fund and RM 200 million to drive the NIMP mission.
Additionally, GLC and GLIC companies will contribute RM 1.5 billion to support startups venturing into high-growth and high-value sectors.
“The growth in 2024 will also be supported by an expansionary fiscal approach adopted in the 2024 Budget, with a total allocation of RM 393.8 billion” she added.
