KUALA LUMPUR (Jan 16): Minister of Finance II Datuk Seri Amir Hamzah Azizan said ongoing reforms initiated by the Madani government are yielding green shoots, with the country securing RM225 billion in approved investments in the first nine months of 2023 (9M2023).
The approved investments in 9M2023 represents a 6.6% increase from the year before, and represented the highest amount for the corresponding period over the past decade, Amir Hamzah told reporters at the launch of Bursa Malaysia as a multi-asset exchange on Tuesday.
“This indicates that investors have responded well to the Madani Economy vision, along with the supporting policy documents, namely the National Energy Transition Roadmap (NETR), the New Industrial Master Plan 2030 (NIMP), and the Mid-term Review of the 12th Malaysia Plan,” he said.
“In the coming months and years, the government will see through the execution of these policy documents and ensure that the Madani Economy vision will become a reality.
“Despite the external volatility posing downside risks, the government is projecting Malaysia’s economy to grow by 4% to 5% in 2024. This is underpinned by the government’s diligent efforts to bolster domestic demand and generate more investments into the country,” he added.
The government under Prime Minister Datuk Seri Anwar Ibrahim sought to revamp the economy by focusing on new growth engines, including the renewable energy sector and high value manufacturing, on the back of ongoing megatrends, namely electrification, energy transition and digitalisation.
Aside from efforts to lure in foreign direct investments, the government has also taken a stand by urging government-linked companies and investment companies to reduce overseas investments, to focus on domestic investments instead.
Other reforms in the pipeline include a review of blanket subsidies and existing social protection programmes, to improve support for the needy while better managing the subsidy bills borne by the government.
These tie with a wider effort to address Malaysia’s fiscal position, including to develop strategies to increase revenue base, reduce operating expenditure, and manage a ballooning national debt of over RM1 trillion currently.
At the press conference, Amir Hamzah said the government has agreed to exempt unit trusts from capital gains tax as well as taxes on foreign-sourced income that were enforced since the start of the year.
Citing that 90% of unit trust holders are individuals, the exemption will ensure that the rakyat will continue to benefit wholly from the gains of their hard-earned money, and invest for their future, he said.
“The government will continue to make capital market investments in Malaysia rakyat-friendly,” he added.