PETALING JAYA: The government is still confident it can achieve its 4-5% GDP target for 2024 and will accelerate the implementation of its Madani economic framework this year, says the finance ministry.
Earlier today, Bank Negara Malaysia announced that the country’s economy grew 3.7% last year, just below the government’s forecast of 4%.
It was also a sharp drop from the 22-year high of 8.7% growth recorded in 2022.
In a statement, the finance ministry noted that while full-year growth for 2023 was “slightly lower” than forecast, the country’s 3.7% GDP growth in Q4 2023 was supported by improving economic fundamentals.
Apart from the labour market registering positive growth momentum and the unemployment rate decreasing to pre-pandemic levels (3.3%), the ministry highlighted that inflation tapered to 1.6% last quarter.
In the statement, Prime Minister Anwar Ibrahim, who is also the finance minister, said the continued growth in domestic demand showed the government’s reform agenda is starting to yield positive results.
“The government is confident of achieving stronger growth of between 4% and 5% in 2024 on the back of strong fundamentals and reforms mapped out in the ‘Economi Madani’ plan and 2024 budget,” said Anwar in the statement.
“Aside from the ongoing fiscal restructuring which mutually benefits the government and the public, efforts to enhance governance and ease of doing business have stimulated economic activities and progressively restored investor confidence in Malaysia.”
The ministry also noted that the 5.2% rise in domestic demand in Q4 2023 helped cushion the 3.2% decline in Malaysia’s trade, which it said was down due to exports softening on the back of cooling global demand.
The ministry also said the government is set to accelerate the implementation of its Madani economic framework this year, pointing out the importance of reforming Malaysia’s economy to not only address systemic, historical challenges, but also to focus on new areas of sustainable growth and resilience.
Launched last July, the framework set seven benchmarks as medium-term targets to be achieved within the next 10 years.
Among them were making Malaysia among the top 30 largest economies in the world, placing the country in the top 12 of the Global Competitiveness Index, and achieving a fiscal deficit of 3% or lower.
Other benchmarks outlined in the blueprint include women forming up to 60% of the workforce. - FMT
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