Malaysia's Economy Grows 5.1 Percent In 2024

JAKARTA - Malaysia's economy grew 5.1 percent in 2024 thanks to the continued expansion of domestic demand and export recovery.

Quoting Antara, Bank Negara Malaysia (BNM) said, domestically, growth was mainly driven by an increase in household spending which reflected good labor market conditions, policies that support households and healthy household financial balances.

In addition, coupled with strong investment approval and further advances from multi-year projects by the private sector and the public, which include catalytic initiatives under the national master plan, namely the New Industry Master Plan, the Nacional Energy Transition Roadmap, and the National Semiconductor Strategy, which provides further impetus to investment growth.

Meanwhile, from external means, exports recover amid stable global growth, a continuing technology cycle and high tourist arrivals and spending.

It supports the running balance, leading to a sustainable surplus of 1.7 percent of Gross Domestic Product (GDP) in 2024. There is an increase when compared to 2023 which is only 1.5 percent.

In 2023, Malaysia's economic growth was recorded at 3.6 percent.

BNM Governor Dato Seri Abdul Rasheed Ghaffour said going forward, although global conditions could be a challenge, Malaysia's economic growth would be driven by strong expansion in investment activity, resilient household spending and export expansion supported by Malaysia's strong economic fundamentals.

However, he said, the prospect of growth remains subject to a reduced risk.

The risks include a slowdown in the economy in key trading partners amid rising risks of trade restrictions and investment as well as lower commodity production than expected.

Nevertheless, he said the potential for increased growth included a larger overflow of technology cycles, stronger tourism activities and the implementation of faster investment projects.

He also estimates that inflation will remain under control by 2025, amid excessive domestic demand. While the recently announced domestic policy reform will contribute to some upward pressure on prices, the overall impact on inflation is expected to be under control.

However, he said the increased risk could arise from a greater tiered effect than policies on the wider price of the Consumer Price Index.