Strong 3Q GDP puts Malaysia on track for 4.8 -5.3% growth in 2024

KUALA LUMPUR: Prime Minister Datuk Seri Anwar Ibrahim said Malaysia’s strong economic performance in the third quarter (3Q) of 2024 reflects both business and consumer confidence in the Malaysian economy and the government’s economic management.

The Ministry of Finance (MOF) in a statement today noted that the 5.3 per cent gross domestic product (GDP) growth recorded in 3Q 2024 was driven by resilient domestic demand and a further recovery in the performance of the external sector.

The performance in 3Q was in line with the Department of Statistics Malaysia’s (DOSM) advance estimate released earlier, it said.

According to MOF, the robust performance brought Malaysia’s economic growth for the first nine months of 2024 to 5.2 per cent, compared to a 3.8 per cent growth in the same period last year.

This puts the country on the right track towards achieving the government’s official forecast range of

4.8 per cent to 5.3 per cent, it noted.

Anwar who is also the Finance Minister said that despite global turbulence and uncertainties, Malaysia’s fundamentals continue to gain momentum, growing from strength to strength.

“This solid footing positions us well to close out 2024 on an ebullient note as we advance essential economic reforms to elevate Malaysia’s economic stature and complexity,” he added.

He said the MADANI government remains steadfast in its reform agenda to strengthen governance and economic transformation as laid out in the MADANI Economy framework.

“Staying the course on reforms is reflected in our 2025 Budget, whereby the government continues to strengthen fiscal management by reducing the fiscal deficit, expanding our revenue base and further optimise government expenditure including through targeted subsidies on fuel,” he explained.

He said that Budget 2025 balances the fiscal responsibility with an expansionary fiscal stance and public investment, to support the robust growth momentum going forward.

Anwar expressed optimism about the country’s outlook, where the MADANI Economy framework clearly charts Malaysia’s trajectory to enhancing its value in the global supply chain, all while achieving economic security plus sustainability.

“The government believes that opportunities can arise even in times of chaos and that a resurgent Malaysia is well-positioned to capitalise on the increasing adoption of the Plus-One strategy.

He also highlighted Malaysia’s efforts to strengthen and renew bilateral and multilateral cooperation,

while maintaining its non-aligned stance, which would yield benefits through enhanced trade and a broader export footprint.

Furthermore, the ministry said that with the allocation of RM421 billion, Budget 2025 is set to drive fiscal and economic reforms, prioritising quality investments that will generate higher-income jobs and enhance public services and infrastructure to elevate the living standards of the people.

The ministry said the government has taken firm and gradual measures aimed at narrowing the deficit from 5.0 per cent in 2023 to 4.3 per cent in 2024, and further to 3.8 per cent in 2025, signalling its commitment to long-term financial sustainability.

“The government remains resolute in ensuring the continuous implementation of pragmatic measures and initiatives to reinforce the country’s economic fundamentals, providing a solid foundation to withstand any potential challenges that may threaten economic stability,” it added. – BK