KUALA LUMPUR: The government will continue implementing strategies and programmes to sustain economic growth and safeguard the well-being of the people under the 2025 Budget.
According to the Economic Outlook 2025, next year's budget will focus on transforming the economy by "Raising the Ceiling" and improving the quality of life by "Raising the Floor," alongside public sector reforms.
"The 2025 Budget aims to position Malaysia as a competitive, world-class investment destination, driving sustainable economic growth.
"By prioritising the digital economy and innovation-led industries, the nation seeks to enhance productivity, foster technological advancement, and attract high-quality investments," the report said.
Malaysia, as a global leader in Islamic finance, continues to strengthen its financial ecosystem with renewed emphasis on the halal, low-carbon, and green economies.
The report emphasised that empowering micro, small, and medium enterprises (MSMEs) to become regional champions will also boost economic resilience.
"Sustainability remains at the heart of this transformation, ensuring Malaysia's success in an evolving global landscape," it said.
To accelerate progress, the report highlighted that incentives and financing will be directed towards driving the National Energy Transition Roadmap (NETR) and the New Industrial Master Plan (NIMP) 2030.
It added that these policies are designed to meet global market demands by attracting high-growth, high-value (HGHV) investments, creating high-paying jobs, and strengthening Malaysia's position in the global supply chain.
Furthermore, the report said the government will leverage these policies to create an environment that promotes both economic prosperity and environmental sustainability.
Through the 2025 Budget, it noted that government-linked investment companies (GLICs) and government-linked companies (GLCs) will play a pivotal role in driving HGHV industries by accelerating domestic direct investments (DDIs), including venture capital initiatives.
The report added that the collective strength of GLICs and GLCs will be mobilised through Gear-Up initiative, generating synergies to foster high-impact investments, drive innovation, and enhance governance while contributing to national development goals.
It also said GLICs and GLCs will increase their commitments to community engagement, focusing on initiatives that enhance stakeholder well-being.
Meanwhile, the report said the government's commitment to enhancing Malaysia's global competitiveness is underscored by measures aimed at promoting technology adoption across industries and strengthening research, development, commercialisation and innovation.
It added that the 2025 Budget proposes initiatives to streamline business processes, particularly by expediting approvals for new and expanding investments.
The Joint Committee on National Competitiveness will develop a comprehensive plan to foster innovation, improve regulatory frameworks, and enhance public-private collaborations, solidifying Malaysia's position as an attractive investment destination, the report noted.