Malaysia’s economic growth forecast at around 5% this year

Malaysia is on course for economic growth of around 5% this year, with the semiconductor and manufacturing sectors helping drive expansion alongside a growing domestic economy.

Economy Minister Akmal Nasrullah Mohd. Nasir said the forecast reflects current economic conditions, including July inflation of 1.8%. He said stable prices and solid growth give the government room to maintain economic stability and help protect people’s purchasing power.

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Growth that we are enjoying needs to be assessed in terms of its impact on society as a whole, and how it enables the government to continue providing support and room for people to deal with the cost of living.

The government’s fiscal approach will continue to target moderate living costs, Akmal said. Recent measures announced by Prime Minister Anwar Ibrahim should give the government further room to support the public, while the next stage of the framework is expected to be set out in the budget due to be presented in October.

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Gas needs will become one of the basic energy sources for our future.

“Growth that we are enjoying needs to be assessed in terms of its impact on society as a whole, and how it enables the government to continue providing support and room for people to deal with the cost of living,” Akmal said.

Energy demand is also shaping the outlook. Akmal said gas demand should continue rising because gas is viewed as an important fuel during Malaysia’s energy transition. The government plans to expand gas infrastructure and power-generation capacity, including the development of RG3 in Lumut, to provide more supply for future energy needs. Decisions on the overnight policy rate remain the responsibility of Bank Negara Malaysia and will depend on current economic conditions.

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That is why, in gas infrastructure planning, we are developing RG3 in Lumut so that more gas supply can become part of our future energy needs.