Government to draw more high-quality FDI to boost growth: Amir Hamzah
KUALA LUMPUR: The government is actively working to attract more high-quality foreign direct investment (FDI) to stimulate growth, while maintaining a dynamic ecosystem, said Finance Minister II Datuk Seri Amir Hamzah Azizan.
"Investments continued their growth momentum in the first quarter of 2025, recording a 9.7 per cent increase.
"This reflects the positive response from global investors to the Madan government's pro-development policies and strong emphasis on sustainability, as outlined in the National Energy Transition Roadmap (NETR), New Industrial Master Plan (NIMP) 2030, National Semiconductor Strategy (NSS) and other key national policy frameworks," he said in a statement.
Following Bank Negara Malaysia's announcement of a 4.4 per cent gross domestic product growth in the first quarter, Amir Hamzah said the government recognises potential downside risks to the official 2025 growth forecast of 4.5-5.5 per cent.
The risks stem from weakening global demand, escalating geopolitical tensions and the growing trend of protectionist trade policies, particularly the recent imposition of reciprocal tariffs by the United States.
He noted that the 2025 GDP forecast will be revised once the reciprocal tariff situation stabilises and greater clarity emerges.
In the meantime, Amir Hamzah said the government will implement several mitigation measures to further strengthen the country's fundamentals, including efforts to boost domestic direct investment (DDI).
The government will also continue to engage the US in bilateral trade discussions, while also leveraging multilateral platforms such as the Asean and the Regional Comprehensive Economic Partnership (RCEP) to uphold a fair and conducive global trade environment.
"The Madani government will redouble efforts to diversify export markets and secure new trade agreements to mitigate the impact of global trade disruptions.
"These efforts have already borne early fruit in 2024, as reflected in increased investment and exports to non-traditional markets such as Egypt, Pakistan, and Cambodia, alongside stronger export growth to other Asean member states," he added.
Amir Amzah also said that the government will work to accelerate the implementation of the Ekonomi Madani reform agenda.
This will be focusing on fiscal sustainability, strengthening economic value chains, protecting the welfare of the broader population through social safety net and unlocking the potential of the local talent pool.
He pointed out that the government will continue to closely monitor both domestic and global economic developments.
He added that the government is prepared to implement responsive and appropriate policy measures to ensure that Malaysia's economic growth remains consistent, sustainable and inclusive for the well-being of all segments of society.
"The government remains committed to maintaining investor confidence and protecting domestic industries amid an increasingly complex global economic landscape," he said.
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