KUALA LUMPUR, Oct 20 — The Malaysian economy is expected to grow moderately at 3.3 per cent per the gross domestic product’s (GDP) initial estimate for the third quarter of 2023 (Q3 2023) compared with 2.9 per cent in Q2 2023, according to the Economy Ministry.
It said sectoral performance estimates indicate growth is supported by the services and construction sectors, with tourism activities showing recovery and progress in investment, as well as the implementation of major infrastructure projects like the East Coast Rail Link (ECRL), Light Rail Transit 3 (LRT3), and MyDIGITAL 5G.
“The initial GDP estimate shows the impact of weak global demand during the period, especially in manufacturing exports, particularly in the electrical and electronics (E&E) segment and related primary industries,” the ministry said in a statement today.
Furthermore, Malaysia’s economy is estimated to grow at four per cent in 2023 based on current global economic conditions and the first half of the year’s performance.
The estimates presented in the Budget 2024 considered the expected growth in Q3 2023, which is within this growth range.
It said for 2024, Malaysia’s economy is expected to grow from four per cent to five per cent, supported by a recovering external environment and better domestic demand expectations.
Initial indicators, like the World Semiconductor Trade Statistics (WSTS) semiconductor sales, reveal the technology cycle will rebound and potentially benefit Malaysia’s E&E exports.
Additionally, the labour market is expected to remain stable, focusing on increasing investment activities via the continuous implementation of infrastructure projects and the government’s main policy strategies and initiatives.
“In this regard, the government will continue to ensure the country’s economic growth and the well-being of the people remain a priority through the implementation of the strategies announced in Budget 2024, the 12th Malaysia Plan (12MP) Mid-Term Review (MTR), the National Energy Transition Roadmap (NETR), and the New Industrial Master Plan 2030 (NIMP 2030).
“The government’s current priority is to stimulate Malaysia’s economic growth and expand its size to restore the economy to its true trajectory,” said the ministry.
The economy will be restructured to accelerate the transition towards becoming a high-income nation in line with the Madani Economy’s aspiration to make Malaysia a leading economy in Asia.
The approach taken by the government in the 12MP MTR is to implement 17 bold measures, including high-growth, high-value-added industries (HGHV), energy transition, technology and digitalisation, high-value E&E, agriculture and agro-based industries, and rare earths.
Bold measures will also be implemented to empower micro, small and medium enterprises (MSMEs) and social enterprises, strengthen public transportation networks, and ensure future talent availability.
“Focus will also be given to attract more quality investments in technology-based industries to stimulate sectoral growth and create high-income jobs,” it said.
— Bernama
