KUALA LUMPUR, May 17 — The government is optimistic that Malaysia’s gross domestic product (GDP) is well placed to expand within the official forecast range of 4.0 per cent to 5.0 per cent in 2024, driven by higher-than-expected first quarter of 2024 (1Q 2024) GDP growth.

In a statement today, the Ministry of Finance (MoF) said Malaysia’s economy, powered up by improvements in export performance and a revitalised domestic demand, expanded at a higher rate of 4.2 per cent in 1Q 2024 (4Q 2023: 2.9 per cent), exceeding Bloomberg consensus forecast of 3.9 per cent.

Prime Minister and Finance Minister Datuk Seri Anwar Ibrahim said the domestic economy’s encouraging performance in 1Q 2024 indicates that the government’s policies and economic management are effective in promoting growth.

"In spite of the turbulent global economy, Malaysia’s economy has performed strongly. Within the first full year in office, the Madani government initiated a full set of policy reforms and remain committed to our reform agenda to transform the economy and public delivery,” he said in the statement.

Anwar said the government is committed to see through the policy implementation set forth in the Madani Economy framework in the months and years ahead.

He said the optimism springing in the domestic capital markets, exemplified by the FTSE Bursa Malaysia KLCI etching new highs, reflects global investors’ renewed interest in Malaysia’s reform narrative.

MoF said that reflecting favourable economic fundamentals in 1Q 2024, total employment rose by 2.1 per cent to 16.4 million people. Over 50,000 new jobs were created, contributing to the low unemployment rate of 3.3 per cent.

The growth of salaries and wages in the services and manufacturing sectors also remained encouraging at 3.3 per cent and 1.2 per cent, respectively.

It also noted that inflation remained benign at 1.7 per cent and industrial production index (IPI) rose by 3.3 per cent.

On the external front, Malaysia’s total trade grew by 7.1 per cent to reach RM690.6 billion in 1Q 2024.

MoF said the continued economic growth momentum signifies the country’s strong fundamentals and investors’ confidence on the economy, buoyed by sound Madani Government’s policies.

It said the Madani Economy framework, which mapped out fresh strategies for Malaysia’s economic growth and identified new growth industries, has started to bear positive results evidenced by the economy’s continuing expansion.

"This is further catalysed by economic measures outlined in Budget 2024 and the government’s commitment to introduce responsible fiscal management while ensuring the welfare of vulnerable communities are protected,” it said.

In addition, the implementation of strategies and measures under the National Energy Transition Roadmap, New Industrial Master Plan 2030 as well as the ongoing 12th Malaysia Plan initiatives would continue to attract quality investments in high value-added industries, the ministry said.

This would create high-income jobs and enhance quality of living of the rakyat, it said.

"Moving forward, efforts are being made to further strengthen public service delivery as well as increase productivity. This is to ensure that pro-economic growth policies are executed as planned to achieve the nation’s aspiration,” it added. — Bernama