KUALA LUMPUR, Aug 16 — The second quarter 2024 (2Q 2024) growth of 5.9 per cent has put Malaysia in a comfortable position to cap off the year with a growth in the upper-end of the government’s official forecast range of 4.0 to 5.0 per cent.
Prime Minister cum Finance Minister Datuk Seri Anwar Ibrahim said that Malaysia’s rousing economic performance again defied the gruelling global conditions that have sapped demand and growth in many parts of the world.
“The positive numbers and indicators are proof that the Madani government’s policy reforms and economic management are bearing results,” he said in a statement today.
These encouraging results have further motivated the government to continue driving the execution of the Madani Economy reform agenda, and it is confident that the country’s growth momentum will be further strengthened going forward.
By further executing the policy reforms envisioned in the Madani Economy medium-term framework, Malaysia could experience a new economic growth cycle and bring about the necessary fiscal reforms.
“The National Semiconductor Strategy launched in May 2024 adds to the Madani government’s arsenal of policy documents to modernise the economy by building high-value and sustainable industries.
“Budget 2025, to be tabled on October 18, will continue the policy execution that began in earnest this year,” Anwar said.
Meanwhile, in the same statement, the Finance Ministry said the stronger-than-expected growth of 5.1 per cent in the first half of 2024 had placed the government in good stead to meet its fiscal deficit target of 4.3 per cent in 2024, while also providing enough space to manoeuvre measures that could support growth for the remainder of the year if need be.
Nonetheless, the government remains committed to adhering to its medium-term target of tapering the fiscal deficit to 3.0 per cent or better.
“Efforts are underway to enhance governance and digitalise public services, which would incrementally widen the revenue base. The government will also continue to identify areas to optimise expenses and reduce leakages,” it said.
— Bernama
