KUALA LUMPUR: The government is confident that gross domestic product (GDP) growth for 2024 will surpass the previously set target of four to five per cent.
Finance Minister II Datuk Seri Amir Hamzah Azizan said this is supported by sound fiscal policies and a continued commitment to reforms under the Madani Economy framework.
"Our country's economic transformation is clearly gathering momentum, despite facing a confluence of challenges: energy scarcity, political polarisation, a widening socio-economic gap and ongoing geopolitical tensions, to name a few.
"However, a year in of driving the Madani Economy plan, we are seeing evident signs of progress," he said in his closing address at the Khazanah Megatrends Forum (KMF) 2024 today.
In the second quarter of 2024 (2Q24), Malaysia's economy posted a GDP growth of 5.9 per cent, supported by steady recovery in key sectors like construction, manufacturing, services and tourism.
Amir Hamzah said the strong performance in both foreign and domestic direct investments reflect growing investor confidence.
He added that inflation has moderated to 1.9 per cent as of August, helping to ease cost of living pressures for the people.
"The performance of the FBM KLCI, which hit an all-time high in market capitalisation of over RM2 trillion in June this year, underscores the resilience of domestic equities despite global uncertainties.
"The ringgit continues to outperform regional currencies, recovering by 12.5 per cent since Feb this year on the back of not just US Federal Reserve (Fed) rate cuts but also on Malaysia's efficient fiscal management, and government initiatives to attract investments," he noted.
Meanwhile, Amir Hamzah said the 2025 Budget, which will be tabled on Oct 18, will be forward-looking, inclusive, and resilient.
He said more than that, it will be pro-investment, pro-development, pro-empowerment and most importantly, pro-people.
"At the Ministry of Finance (MoF), efforts are underway to realise the Madani Economy vision of Building a Better Malaysia Together.
"Through engagement sessions and roadshows in preparation for 2025 Budget, the MoF has engaged with stakeholders from all strata of society – from the people, to civil servants, think tanks, industry players, and capital providers.
"This is to ensure the creation of a more inclusive, more relevant, and more effective budget that will strengthen the national economy," he noted.
The minister also said the 2025 Budget will remain firmly anchored on the Madani Economy framework, a long-term plan where consistency and persistence are key success factors.
He added that with positive macroeconomic indicators providing a strong setting, the budget will focus on continuing sound fiscal policies for economic resilience, and people-centric initiatives to ensure no one is left behind.