Malaysia’s GDP is projected to increase by 4.9 percent in 2024 and 4.7 percent in 2025, a rise from 3.6 percent in 2023, as indicated by the latest OECD Economic Survey of Malaysia.
This growth is fueled by a significant uptick in domestic demand and a recovery in exports, particularly in the electronics sector. Inflation is anticipated to remain steady at 2.8 percent in 2024 and 2.7 percent in 2025, following a rate of 2.5 percent in 2023, due to the ongoing cautious monetary policy in the near term.
Malaysia’s economic growth has proven resilient despite various challenges, including the COVID-19 pandemic, supply chain issues, and the fallout from the war in Ukraine. The economy has remained stable, driven by strong domestic demand, low unemployment, and manageable inflation.
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Luiz de Mello, OECD country studies director, noted during the Survey presentation in Putrajaya, alongside Malaysia’s Minister of the Economy, Rafizi Ramli, that Malaysia’s strong economic performance is paving the way for faster convergence in living standards with wealthier OECD countries. He emphasized that to achieve more inclusive and sustainable growth, the country should focus on implementing targeted social assistance strategies, utilizing the productive potential of small enterprises, and strengthening its climate initiatives.
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