MALAYSIA'S ECONOMY EXPECTED TO GROW MORE THAN 5 PCT IN 2025 -- AMIR HAMZAH TELLS BLOOMBERG

KUALA LUMPUR, Jan 12 (Bernama) -- Malaysia’s economy is expected to sustain steady growth in 2025 of above 5.0 per cent, supported by strategic investment, robust fiscal management and economic resilience, said the Ministry of Finance. 

Finance Minister II Datuk Seri Amir Hamzah Azizan highlighted Malaysia’s gross domestic product (GDP) growth surpassed expectations last year, with the economy exceeding both initial budget targets and Bank Negara Malaysia’s (BNM) projection.

“I think we had a great year last year. This year, I think the tailwind will still continue. I think we have a good base because foreign direct investment (FDI) remains strong, and a lot of the activity that’s generated is now playing out in the economy. 

“Despite the choppiness in the global market, we have enough resilience to ride it through. This year, we will stay above 5.0 per cent,” he said in an interview with Bloomberg’s Haslinda Amin.

Malaysia is an open trading nation

Amir Hamzah stressed that Malaysia remains steadfast in advocating open markets despite shifts in global trade dynamics. 

“Malaysia is an open trading nation, and effectively, what we want is an open market for everybody to participate in. We do not like to choose sides, and I think we have been able to navigate a lot of economic positions over the past years and prove that we are a fairly open economy.

“Despite there may be a much tougher stance along the way, the diversity of the Malaysian economy itself provides resilience along the way,” he said. 

Amin Hamzah pointed out that Malaysia has a resilient economic base, ranging from commodities to manufacturing, services and high-tech industries like the electrical and electronics (E&E) sector, as well as semiconductors.

Additionally, he said data centres are also adding to Malaysia’s economic complexity. 

While geopolitical tensions and potential external policies introduced under US President-elect Donald Trump may pose risks to Malaysia, Amir Hamzah expressed hope for continued principles of free trade. 

“It (the principles of free trade) have helped the world to grow into a much better form, and I am hopeful that we will get and be able to get people to understand that Malaysia is positioned as an open trading nation, and we will continue to be supportive of this way forward for Malaysia,” he said. 

Ringgit’s stability and trade resilience

The ringgit strengthened by nearly 3.0 per cent in 2024, emerging as one of Asia’s best-performing currencies. 

Amir Hamzah attributed the growth to strong FDI inflows, domestic investments, and strategic interventions by government-linked investment companies (GLICs).

“We got some help from our GLICs in terms of supporting government initiatives. When they had excess profits, they brought it back. So that created demand for the ringgit along the way. But it was not the primary driver of why we did it. It helped cushion blows along the way. 

“The second thing was making sure that as long as we can generate a lot of FDIs coming in, and we can generate a lot of interest coming in, investments coming in, then the demand for ringgit actually helped,” he added. 

-- BERNAMA