With a robust economic performance in 2024, Malaysia is stepping into 2025, and economists are generally optimistic about the country's economic growth, expecting a gross domestic product (GDP) growth of up to 6%.In the past year, the Malaysian economy has demonstrated strong resilience and vitality.

According to multiple economists' analysis, the strong performance of consumption and investment is a key factor driving Malaysia's sustained economic growth. Shan Saeed, Chief Economist of Juwai IQI, pointed out that assuming consumption and investment patterns continue to remain strong, Malaysia's GDP growth rate is expected to reach 5% to 6% in 2025, which will further promote macroeconomic stability.

Shang Saide expressed appreciation for the positive measures taken by the Malaysian government to promote domestic and foreign investment. He believes that Malaysia is rapidly emerging as a regional data center and technology hub based on its successful semiconductor ecosystem, which not only attracts a large amount of foreign direct investment (FDI), but also enhances the confidence of local investors. He estimates that private consumption and investment together account for over 80% of Malaysia's GDP and are important drivers of economic growth.

Yao Jinlong, President of the Malaysian Economic Association, also holds an optimistic attitude. He pointed out that with the support of income growth, low unemployment rate, and targeted income support policies from the government, Malaysia's consumer confidence will continue to remain strong. Meanwhile, Yao Jinlong also mentioned that there will be strong performance in the first three quarters of 2024private investmentAn increase of 12.1% is expected, and this trend is expected to continue, becoming a powerful driving force for economic growth.

In addition, Afzanizam Rashid, Chief Economist of Commercial Bank of Malaysia, stated that the ongoingExpansionary fiscal policyIt will help increase government and private sector spending, thereby further promoting economic growth. Although the rising cost of living may make consumers more cautious, it is expected that consumer spending will remain positive.

From an external perspective, a series of interest rate reduction measures by many major economies will provide support for global demand, which will help maintain Malaysia's export growth. The International Monetary Fund (IMF) previously predicted that Malaysia's GDP will grow by 4.8% in 2024 and continue to grow to 4.4% in 2025.

Malaysia has also taken proactive measures in dealing with external unfavorable factors. Yao Jinlong mentioned that the government is working hard to alleviate inflationary pressures and supply chain disruptions to ensure the smooth operation of the economy. These measures include strengthening domestic production, diversifying export markets, and improving supply chain flexibility.