KUALA LUMPUR: Despite the absence of mega project developments in Budget 2025, existing mega projects will continue to support Malaysia’s economic growth next year, said Bank Negara Malaysia governor Datuk Seri Abdul Rasheed Ghaffour.
He said the government had secured investments totalling RM330 billion into the country in 2023 and RM160 billion in the first half of 2024, which could support Malaysia’s economic growth in 2025.
“This is a good impact. We see the investments going to high-quality fields, creating high value-added activity and high-income jobs,“ he said, adding that the investments had strong domestic income linkages that would enhance the complexity of the economy.
During a joint press conference with the Department of Statistics on the third quarter of 2024 gross domestic product (GDP) data here today, Abdul Rasheed highlighted Malaysia’s bright growth prospects, backed by its strong fundamentals and growth impetus.
This includes rising employment rates and measures to increase income including the minimum wage policy.
“In terms of export, we are very well-plugged in the global supply and value chain, with regard to the electrical and electronics (E&E) and non-E&E,“ he added.
Abdul Rasheed noted that Malaysia had also benefited from the global tech upcycle while tourist spending has also increased beyond the pre-pandemic level.
On top of that, Malaysia had also undertaken relevant measures such as fiscal and labour market reforms that would contribute to strengthening the country’s fundamentals.
Effect of Trump’s presidency on Malaysia’s economy
Abdul Rasheed said Malaysia is taking a wait-and-see stance on Trump’s second term in his presidential administration.
“We need to see what actually goes into the actual policy formulation. Once we have clarity, then we will be able to do an assessment. We will not speculate at this point,” he added.
The governor said Malaysia’s economy was stable during Trump’s first presidential administration, between 2017 and 2021.
“In fact, I think during that period, between 2017 and 2019, our GDP grew by 10 per cent and our exports grew by about 8.0 per cent.
“Our ringgit appreciated by about 8.0 per cent after initial volatility. So, we can expect the same thing as well,“ he added.
