KUALA LUMPUR - Malaysia is expected to move forward toward a higher economic trajectory with the conclusion of the recent six state elections.
The government looks committed to buttressing economic growth in 2024 with enhanced social and economic development for the country, an economist said.
Juwai IQI global chief economist Shan Saeed said in the last three months Malaysia has put itself in the limelight in terms of global investors allocating funds for long-term investments, with Tesla set to make the country its regional hub due to its macroeconomic stability.
"While many countries are struggling to achieve economic growth and facing a slowdown like Singapore, the United Kingdom, South Korea, and Japan, Malaysia continues to move toward a higher economic trajectory,” he told Bernama.
According to the Malaysian Investment Development Authority (Mida) investment report, Malaysia has once again established itself as a top investment destination, attracting RM71.4 billion in approved investments during the first quarter of 2023.
These investments, spanning across the manufacturing, services, and primary sectors, are set to bring prosperity to the country and create 23,977 job opportunities nationwide, Shan shared.
He also noted that foreign direct investments (FDI) continue to outpace domestic direct investment (DDI), contributing RM37.5 billion, or 52.5 per cent of the total approved investments.
"The Ministry of Investment, Trade and Industry (Miti) and Mida have done a remarkable job in keeping Malaysia attractive to global investors with strategic maneuvering.
"This validates Juwai IQI's economic growth outlook forecast that we predicted in January 2023 that gross domestic product (GDP) will meander around 4.5 to 5.5 per cent. We maintain the status quo as far as the economic trajectory is concerned, premised on macroeconomic stability,” he said.
The recently concluded six state elections saw a status quo outcome with Pakatan Harapan and Barisan National retaining governance of Penang, Selangor, and Negeri Sembilan while Perikatan Nasional (PN) maintained power in Kedah, Kelantan, and Terengganu.
Bank Muamalat Malaysia Bhd chief economist Mohd Afzanizam Abdul Rashid said judging from the lower voter turnout, it showed that Malaysians were mostly reluctant to cast their votes as they have become fatigued with elections.
"Perhaps it is time for the ruling coalition at the federal level to showcase their economic development, one that will give a positive impact on the rakyat, businesses and investors.
"Therefore, the detailing of the Madani Economy is crucial as the rakyat would want to know the direction of the country’s economy,” he added.
Afzanizam highlighted that economic reforms in areas like subsidies and taxes are critical for ensuring that limited resources are being used and directed to promote inclusive growth and better productivity.
Spearheading key infrastructure projects such as the East Coast Rail Link (ECRL), the Pan Borneo Highway and rail-related projects are important to create positive spillover effects in various industries, namely the services and manufacturing sectors, he shared.
"Also promoting high-tech industries such as aerospace, high-end semiconductor manufacturing, electric vehicles, and chemical industries are some of the key areas that are needed to create high quality and high paying jobs among Malaysians.
"So in a nutshell, 2023 to 2027 is about delivering results and a positive outcome to the economy.
"If the government can do it right, I am sure it will attract foreign capital to the country which could help improve our ringgit and equity markets,” he added. - BERNAMA