KUALA LUMPUR (Feb 16): The Ministry of Finance insisted on Friday that Malaysia’s economy will expand 4% to 5% this year after missing the government’s own target in 2023.
Malaysia is “confident of achieving stronger growth” in 2024, backed by strong fundamentals and reforms, Prime Minister Datuk Seri Anwar Ibrahim said in a statement. Domestic demand growth indicates that the government’s reform agenda is starting to yield positive results, he said.
“The government will, this year, accelerate its implementation to ignite new economic growth and deliver social reform and justice,” said Anwar, who is also the finance minister. He also reiterated the government’s commitment to shrink fiscal deficit to 4.3% of gross domestic product (GDP) in 2024.
The comment comes following data earlier in the day showing that the third-largest Southeast Asian economy grew 3.7% in 2023, below official estimates of between 4% and 5%, and 2022’s 8.7% growth.
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GDP rose 3% in the final quarter of 2023 from the same October-December period in 2022, trailing economists’ expectations. Both Bloomberg and Reuters surveys of economists predicted a median 3.4% year-on-year rise.