PM Anwar Forecasts 4-5% Economic Growth, Celebrates RM76.1 Billion Foreign Investment Success

Prime Minister Datuk Seri Anwar Ibrahim in his speech today (Mar 21) at the Ministry of Finance Assembly said Malaysia economy is expected to strengthen with a projected growth rate ranging between 4% to 5%. “As of March 2024 alone, we have successfully attracted potential foreign investments totaling RM76.1 billion.

This includes our success in the Trade and Investment Mission in Australia (RM24.5 billion) as well as in Germany and France (RM46 billion).” Anwar said during the assembly.

Other than the success in the recent Trade and Investment Mission, the optimism stems from a confluence of favorable factors that underpin the country’s economic resilience and recovery.

One significant development is the decline in unemployment, which dipped to 3.3% in January 2024, marking a return to pre-pandemic levels and reflecting the labor market’s robustness. This improvement contrasts with the 3.7% unemployment rate recorded in 2022.

Further bolstering the economic outlook is the sustained low inflation rate, which dropped to 1.6% in the fourth quarter of 2023 from 2.0% in the preceding quarter. This stability in prices contributes to consumer confidence and purchasing power, essential components of economic growth.

In addition, Malaysia’s export performance has shown resilience, with a notable 8.7% increase observed in January 2024. This rebound follows a period of contraction spanning ten months from March to December 2023. The uptick in exports aligns with the International Monetary Fund’s projection of a 3.3% global trade growth in 2024, compared to a meager 0.4% in 2023.

The Manufacturing Purchasing Managers’ Index (PMI) has also exhibited an upward trend, reaching 49.5 points in February 2024, the highest since September 2022. This uptick signals early indications of recovery in the manufacturing sector, a crucial driver of economic activity.

Similarly, the Industrial Production Index (IPI) posted a notable increase of 4.3% in January 2024, a stark contrast to the marginal 0.03% decline observed in December 2023. This growth underscores the resilience and vitality of Malaysia’s industrial output.

Anwar further added, “In addition to the positive macroeconomic figures, the prospects for national investment are also at a very good level,”.

In 2023, approved investments soared to a historic high of RM329.5 billion, signaling robust investor confidence in the country’s economic prospects. Projects approved in recent years are progressing well, with a significant portion of manufacturing projects initiated between 2021 and 2023 either completed or underway.

As of March 2024, Malaysia has successfully attracted foreign investments totaling RM76.1 billion. Noteworthy achievements include successful trade and investment missions in Australia, Germany, and France, underscoring Malaysia’s appeal as a strategic investment destination.

The nation’s pivotal role in the semiconductor industry further bolsters its economic standing. As the world’s sixth-largest semiconductor exporter, Malaysia stands to benefit from the ongoing competition between the United States and China in chip production, garnering international recognition and attention.

With a conducive business environment and robust government support, Malaysia remains poised to capitalize on these positive economic indicators and sustain its path towards growth and prosperity.

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