KUALA LUMPUR, Aug 21 — Real estate technology group Juwai IQI expects Malaysia’s gross domestic product to grow by 4.7 per cent this year, with a forecast of 4.9 per cent for 2024.
Juwai IQI unit, Irhamy Valuers International Sdn Bhd, managing director Irhamy Ahmad, said the growth would be attributable to a 30 per cent increase in valuation jobs for large construction machinery and factory equipment.
“Companies are replacing their machinery to increase productivity and accommodate demand growth and this is an excellent sign for the economy,” he said in a statement today.
Last week, the Department of Statistics Malaysia said the country’s economy expanded by 2.9 per cent in the second quarter of 2023, supported by an improving labour market and the continued increase in domestic demand and tourism activities.
Irhamy said no one should take Malaysia’s strong performance for granted because the economy has had to overcome shocks such as the continued absence of Chinese tourists.
“Tourism accounts for 13 per cent of economic activity, but the biggest spenders from the pre-pandemic period have not yet returned. In the summer holidays, Chinese visitors only reached 30 per cent of the pre- pandemic level.”
Instead of tourism, he said the three sectors driving the positive outlook are the transition to net zero, trade and the digital economy.
He said Malaysia’s growing economy would need ever more power, so the transition to net zero would require replacing current power generation with greener alternatives and building entirely new green capacity right from the beginning.
“Decarbonisation will create significant new opportunities. Bank Negara Malaysia estimates that the energy sector alone will need RM1.85 trillion of investment by 2050.
“Just last month, Malaysia announced it had enticed Tesla to set up its headquarters in Selangor despite Indonesia’s ardent wooing of the electric car manufacturer. This is further evidence that Malaysia can succeed in its green ambitions.”
Irhamy opined that trade is the second factor driving economic growth in Malaysia, thanks in part to the Regional Comprehensive Economic Partnership and the Comprehensive and Progressive Agreement for Trans-Pacific Partnership.
Lastly, he said the third factor behind the country’s strong gross domestic product is the rapidly growing digital economy accounting for one of every four ringgit generated by 2025.
“Malaysia’s farsighted investment in 5G is one enabler here, with two-thirds of populated areas already covered by 5G as of July 31.
“Digitisation will both increase growth and reduce costs in these sectors, and that will add still more to overall GDP growth.”
Overall, he said Malaysia is strong economically and looks set to reap benefits over the next two years from digitisation, trade growth and the transition to net zero, all of which will lead to new investments.
— Bernama
