KUALA LUMPUR — The 5.1 per cent gross domestic product (GDP) growth achieved in 2024, which exceeds the initial official forecast of four to five per cent, reflects the government’s confidence and determination to turn around the Malaysian economy, said the Ministry of Finance (MoF).
The achievement was driven by clear and progressive policies introduced since 2023 under the Madani Economy framework and supported by political stability, it said.
In a statement today, Prime Minister and Finance Minister Datuk Seri Anwar Ibrahim said the milestone was achieved through the concerted efforts of the government and industries.
“As we move into 2025, the government remains fully committed to deepening its economic and institutional reform agenda, elevating the country to greater heights,” he said.
Bank Negara Malaysia announced earlier today that Malaysia’s GDP growth jumped to 5.1 per cent in 2024, up from 3.6 per cent in 2023.
According to the MoF, the government also exceeded its fiscal deficit target for 2024 at 4.1 per cent against the targeted 4.3 per cent.
“The economic growth in 2024 was propelled by improvements in private consumption, which rose by 5.1 per cent from 4.7 per cent in 2023; investments, which grew by 12 per cent (2023: 5.5 per cent); total trade, which increased by 9.2 per cent to RM2.88 trillion; and net foreign direct investment inflow, which expanded to RM47.4 billion (2023: RM40.4 billion),” it said.
Other supporting indicators that contributed to the 2024 GDP expansion include inflation moderating to 1.8 per cent (2023: 2.5 per cent) and low unemployment rate at 3.3 per cent (2023: 3.4 per cent), with the trend easing further in Dec 2024 to 3.1 per cent, the lowest in 10 years.
The government has projected an economic growth of between 4.5 per cent and 5.5 per cent in 2025, driven by greater spillover from technology upcycle, faster implementation of catalytic and critical infrastructure projects, and more robust tourism activities.
“Under Budget 2025, government-linked investment companies have collectively pledged to invest RM25 billion in domestic direct investments for its inaugural year of the five-year Government-linked Enterprises Activation and Reform Programme (GEAR-uP).
“Additionally, higher consumer spending pursuant to the increase in the minimum wage and civil servant salaries is expected to further stimulate economic expansion,” the MoF said. — February 14, 2025