Prime Minister Datuk Seri Anwar Ibrahim - Bernama
KUALA LUMPUR: Malaysia’s gross domestic product jumped to 5.1% in 2024 (2023: 3.6%), exceeding the government’s 4%-5% forecast, while the fiscal deficit narrowed to 4.1%, outperforming the 4.3% target.
The Finance Ministry, in a statement, said this achievement reflects the Madani Government’s confidence and determination to turn around the Malaysian economy, driven by clear and progressive policies introduced since 2023 under the Ekonomi Madani framework and supported by political stability.
“This milestone was achieved through the concerted efforts of the Madani Government and industries. As we move into 2025, the Madani Government remains fully committed to deepening its economic and institutional reform agenda, elevating the country to greater heights,” Prime Minister and Finance Minister Datuk Seri Anwar Ibrahim said.
ALSO READ: Malaysia's economy expands 5% in 4Q, 5.1% in 2024
The country’s economic growth in 2024 was driven by strong private consumption, which rose by 5.1% compared to 4.7% in 2023. Investments also saw a significant increase of 12%, up from 5.5% in 2023.
Total trade expanded by 9.2% to RM2.88 trillion while net foreign direct investment (FDI) inflows strengthened to RM47.4bil, surpassing the RM40.4bil recorded in 2023.
The Madani Government has projected the economy to grow between 4.5% and 5.5% in 2025, driven by greater spillover from technology upcycle, faster implementation of catalytic and critical infrastructure projects, and more robust tourism activities.
ALSO READ: Malaysia's GDP expected to hit 5.1% in 2024 vs 3.6% in 2023 - DoSM
Under Budget 2025, government-linked investment companies have collectively pledged to invest RM25bil in domestic direct investments for its inaugural year of the five-year Government-linked Enterprises Activation and Reform Programme (GEAR-uP).
However, weaker external demand from key trade partners, the rise of geopolitical tensions, and protectionist measures may pose a risk to growth.
For the full year, the Government’s net addition of borrowings decelerated to RM76.8bil, a marked reduction from RM92.6bil in 2023.
“The Government is committed to continue implementing key reforms in various areas to solidify long-term fiscal sustainability through targeted subsidy measures, enhanced revenue collection, and stronger fiscal framework. These efforts are consistent with the target of the Public Finance and Fiscal Responsibility Act 2023 (Act 850), namely, to reduce the fiscal deficit to 3% in the medium term to ensure financial sustainability.”
