KUALA LUMPUR, Feb 19 — Malaysia’s gross domestic product (GDP) growth, which reached 5.1 per cent in 2024, has provided direct benefits for the people, including higher wages, quality job opportunities, better social assistance and protection, as well as growth in business and trade, the Dewan Rakyat was told today.
Finance Minister II Datuk Seri Amir Hamzah Azizan said that last year saw, among others, the creation of about 127,000 new job opportunities in the private sector and a low unemployment rate of 3.2 per cent.
“All countries have adopted GDP growth as a national economic performance indicator. GDP growth reflects an economic expansion, higher revenue and more job opportunities that offer better salaries,” he said in his winding-up speech on the motion of thanks for the royal address on behalf of his ministry.
The minister noted that the country managed to achieve a real GDP growth of 5.1 per cent for 2024, with the second-quarter (2Q) GDP growth being the highest at 5.9 per cent. Nominal GDP grew 5.9 per cent.
Last year’s real GDP growth not only exceeded the 3.6 per cent growth recorded in 2023 but also surpassed Budget 2024’s initial projection of four to five per cent.
Amir Hamzah said the economic growth reflects the confidence of consumers and investors in the country’s economy.
He said private consumption continued to be the main contributor to GDP in 2024 at 60.7 per cent, driven by increased demand for essential goods and services.
Investment (gross fixed capital formation) recorded a growth of 12 per cent (compared to 2023: 5.5 per cent), the highest since 2012.
“The increase in private investment, especially in high-tech sectors such as semiconductors, digital, and renewable energy, shows investor confidence in Malaysia’s economic prospects and leads to high-paying jobs for the people,” he said.
Furthermore, he said, GDP growth means higher government revenue, and this inflow of revenue allows for greater allocation for public benefit, which translates into improved cash assistance, decent salaries, social protection and investments in basic infrastructure including healthcare, education and public transportation.
Given the strengthening economic indicators, Amir Hamzah expressed confidence that the GDP growth momentum will continue and drive positive growth in 2025, as forecast, despite the challenging global environment.
He said that as a country that practices the policy of open economy, Malaysia is directly involved in the global supply chain and adopts a neutral approach in dealing with other countries, including the United States (US) and China, which are among the country’s main trading partners.
Trade with the US and China accounted for 11.3 per cent and 16.8 per cent, respectively, of Malaysia’s total trade in 2024.
Amir Hamzah said the country has also seen encouraging momentum in terms of foreign direct investment (FDI) commitments from various sectors and countries.
These include commitments from data centre players such as Nvidia and Amazon Web Services from the US, electronics companies such as Infineon Technologies from Germany and NXP Semiconductors from the Netherlands, as well as automotive investments from China.
“The FDI inflow contributed to the construction sector growth of 17.5 per cent in 2024 compared to 6.1 per cent in 2023,” he said. — Bernama
