Prime Minister Anwar Ibrahim of Malaysia made a significant announcement on September 11, revealing the nation’s ambitious goal of achieving annual economic growth of at least 5% until 2025. This target, though slightly reduced from previous expectations, underscores Malaysia’s commitment to revitalizing its economy following the global economic downturn.
The decision to adjust the economic growth target stems from the adverse impacts of the global economic slowdown on Malaysia’s economy. In the second quarter of 2023, the Malaysian economy experienced its slowest expansion in nearly two years, primarily due to a sharp decline in exports.
Initially, Malaysia had set an economic growth target range of 4.5% to 5.5% per year for the period between 2021 and 2025, as part of its comprehensive five-year economic growth plan.
Prime Minister Anwar emphasized the nation’s strategy to achieve this goal, focusing on high-value industries and increased investment. By shifting its emphasis in these directions, Malaysia aims to foster economic growth and stability.
Furthermore, the Malaysian government has set an ambitious private investment target of RM300 billion (equivalent to approximately USD 64.17 billion) annually until 2025. Prime Minister Anwar elaborated, stating, “The government’s objective is to position Malaysia as the preferred destination for investors by enhancing its competitiveness.”
In an additional commitment to the economic plan, Prime Minister Anwar disclosed that the Malaysian government is allocating an extra budget of RM415 billion (approximately USD 88.77 billion), which represents a significant increase of RM400 billion from the previously announced budget allocation. This augmented investment underscores Malaysia’s determination to navigate the challenges posed by global economic fluctuations and emerge as a resilient and thriving economy in the years to come.