'Malaysia's investment momentum to maintain pace in Q2,' says MITI minister

Malaysia’s investment momentum is expected to maintain its upward trajectory in the second quarter of 2023, according to Bernama who was quoting Malaysian minister of investment, trade and industry (MITI), Zafrul Abdul Aziz in an interview. 

He said that in Q1 2023, Malaysia secured RM71.4 billion of approved investments in various sectors, which was an increase of 60% from RM 44.7 billion in Q1 2022.

According to Bernama’s report, the momentum in Q2 2023, which is slated to be announced soon, also marks positive growth for the country. He added that Malaysia is on track, which is a good sign considering the uncertainties surrounding the global market.

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Malaysia’s total trade, however, is reportedly likely to be moderate in Q2 2023, owing to the slowdown of global trade, with an expected forecast growth of 1.6% to 1.7%. This growth is supposedly in tandem with global economic growth.

According to Bernama, Minister Aziz noted that Malaysia is an open economy where its trade to GDP (gross domestic product) ratio in 2022 stood at 141%, which means that it is heavily affected by global economic shifts. He went on state that even though Malaysia’s GDP forecast for the year is expected to be 4 to 5%, which he is optimistic about, the country should not rely on consumption and government to garner growth.

In order to push its exports into new markets, Minister Aziz highlighted that Malaysian companies would need to explore opportunities in the halal market to mitigate the decline in trade figures, following the fall in prices of commodity prices. The economic framework provided by MITI is crucial to the country’s overall economic growth, he said.

PM Anwar recently announced his aim for Malaysia to be one of the top 30 economies around the world. He said in a speech that Malaysian economic structure will need to undergo a revamp in order to be a leader in Southeast Asia. He made these remarks during a speech about empowering Malaysia through the MADANI economy. 

Double hatting the role of prime minister and finance minister, PM Anwar said that one of the prominent issues that is hindering the success of the economic system is the premature slowing down of growth in the early stages of the country’s efforts towards development. One example of this, as highlighted by PM Anwar, is the decline of the manufacturing sector which fell below the level of 25% of the country’s GDP.

One of the ways in which PM Anwar aims to address this issue is with a new industrial master plan (NIMP) which will invigorate industrialisation and push the economy forward. “In the short term, the mid-term review of the 12th Malaysia plan, which will be presented in parliament, will provide space for the government to reassess and prioritise, including striking a balance between moderate-term growth and a more sustainable fiscal policy,” PM Anwar said. 

Becoming an economic powerhouse should be the primary focus for Malaysia, PM Anwar thinks. To achieve its target of becoming one of the top 30 largest economies in the world in the medium term, PM Anwar said that Malaysia will need to think globally and internationalise the economy to generate prosperity.

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