MALAYSIA'S gross domestic product (GDP) grew 5.3 per cent in the third quarter of this year, one of the highest in this region.
The International Monetary Fund forecasts that Malaysia will outpace China in average growth in the next five years.
In the first nine months of 2024, the economy saw impressive growth of 5.1 per cent and is expected to surpass the full-year target of four to five per cent.
The World Bank has revised upwards its estimate for Malaysia's GDP this year and foresees the country achieving high-income status as early as 2027.
Malaysia's rating has been upgraded by global financial institutions such as JPMorgan.
In the third quarter of this year, inflows of foreign funds grew to RM22.2 billion, the highest since the third quarter of 2012.
With the introduction of an economic vision known as Madani Economy, and through the implementation of the New Industrial Master Plan (NIMP) 2030, the direction of the economy is crystal clear.
The manufacturing sector is set to be transformed under NIMP 2030.
Furthermore, the economy will gain the maximum benefit of the Fourth Industrial Revolution, thanks to the National Semiconductor Strategy, Artificial Intelligence Roadmap 2021-2025, KL20, digital economy blueprint, Bumiputera Economic Transformation Plan 2035, and New Investment Incentive Framework.
We need to continue to mould the economy based on innovation, creativity and technology to create high-income jobs for the youth and for graduates in critical sectors, including semiconductor, green economy and digital technology.
We must also prepare for the possible negative impact of AI, especially in terms of displacement of jobs and professions.
Thus, attracting high-tech companies is crucial, like what Madani Economy is doing, attracting Google, Microsoft, AWS and Oracle to invest here.
FDI inflows are steadily increasing and exports are getting stronger.
The National Energy Transition Roadmap will provide a solid foundation to transition to a greener and sustainable economy.
One policy to be adopted in the 13th Malaysia Plan is on nuclear energy, which is seen as a game-changer for clean energy.
For the past two years, headline and core inflation rates have been kept stable, at below two per cent, and the overnight policy rate remains at three per cent.
Unemployment is at the pre-pandemic level and in the third quarter, private sector nominal wages increased by three per cent.
Civil servants' salaries are going up this month, the minimum wage will see a hike, and a progressive wage policy will be rolled out.
Fiscal deficits are decreasing. Accountability, transparency and good governance will continue to be pursued. The Fiscal Responsibility Act will be a crucial guide for the unity government in fiscal consolidation.
Tax reforms are meant to boost the government's coffers.
The fight to overcome the cartel and Ali Baba culture is commendable, especially in breaking the practice of corruption, and the nexus between business and politics.
The commitment to eradicate hardcore poverty and inequality continues.
Also emphasised are the empowerment of micro, small and medium enterprises, rural development and the protection of marginalised groups.
Food security is being addressed with medium- and long-term policy planning.
Malaysia is set to become the chairman of Asean next year. It is committed to multilateralism and will continue to forge good economic relations with the United States and China.
Being accepted as one of the BRICS' partner countries is a step in the right direction for greater regionalism.
The government is on the right track to achieve targets under Madani Economy and to make Malaysia an Asian economic leader.
* The writer is Associate Professor and Senior Associate Fellow, Economic and Financial Policy Institute (ECOFI), Universiti Utara Malaysia
The views expressed in this article are the author's own and do not necessarily reflect those of the New Straits Times