KUALA LUMPUR: Malaysia's economy is now on stronger footing following the implementation of the Madani Economy framework launched a year ago.
The Finance Ministry, in its 'One Year of the Madani Economy' report released today, said the Gross Domestic Product (GDP) saw a marked improvement in the second quarter of this year, recording a 5.9 per cent growth compared to 2.8 per cent in the same period in 2023.
The ministry said that on Aug 9 this year, the ringgit stood at its highest point in 16 months compared to the US dollar.
In addition, the FBM KLCI benchmark index passed the 1,600 point mark last May, the highest in 24 months, while market capitalisation value exceeded RM2 trillion on May 7, the highest in history.
At the same time, the industrial production index rose in the first six months of this year to 3.6 per cent compared to 1.2 per cent in the same period last year.
Median monthly wages in the formal sector rose to RM2,844 in March this year, a 9.4 per cent increase compared to RM2,600 in the same month in 2023.
The unemployment rate saw a 3.3 per cent decline in the second quarter of this tear, the lowest in the post-Covid-19 pandemic period.
The ministry said the wholesale and retail sector saw a 5.4 per cent increase to RM146 billion in June this year compared to RM138 billion in June last year.
As for the tourism sector, tourism arrivals saw a two-fold increase last year to 20.1 million compared to 10.1 million in 2022.
Tourism spending also saw a 2.5 fold increase to RM71.3 million compared to RM28.2 billion.
Meanwhile, national net borrowing saw a 7.5 per cent decline from RM100 billion in 2022 to RM93 billion last year, and is forecast to reduce further to RM86 billion this year.
According to the report, approved foreign direct investment rose 24 per cent from RM38 billion in Q1 2023 to RM47 billion in Q1 this year.
As per the National Industrial Master Plan (NIMP) 2030, total investment in the manufacturing sector rose to RM151.97 billion while manufacturing value added in the Gross Domestic Product (GDP) rose to 61 per cent.
The NIMP, as part of its macro economy goal for 2030, had targeted to create 3.3 million job opportunities by 2030, and as of 2023, 2.6 million job opportunities have been created.
The Madani Economy Framework: Empowering the Rakyat was launched by Prime Minister Datuk Seri Anwar Ibrahim on July 27 last year,
It comprised two main focuses, namely structuring the economy towards making Malaysia an Asian economic driver, as well as improving the quality of life for Malaysians.
The framework is led by three main thrusts, namely Raising the Ceiling, Good Governance and Public Sector Reform, as well as Raising the Floor.
The framework also aims to achieve seven goals in the medium to long-term, including being among the world's 30 largest economies, a top 12 spot in global competitiveness, being the top 25 in the Corruption Perception Index, lifting the labour share of income to 45 per cent within 10 years, and a top 25 spot in the Human Development Index.