3 days ago
- Business
- New Straits Times
Malaysia is accelerating economic transformation : Amir Hamzah
KUALA LUMPUR: Malaysia is accelerating its economic transformation through regional collaboration, fiscal reform, and sustainable industrialisation, positioning itself as a central force in Asean's growth, Finance Minister II Datuk Seri Amir Hamzah Azizan said during the Invest Asean Malaysia Conference 2025.
Amir Hamzah emphasised Asean's collective economic strength, with a GDP of US$ 4 trillion and a population of 700 million and highlighted Malaysia's robust regional integration, with Asean accounting for 26.6 per cent of Malaysia's trade and over 10 million tourist arrivals in the first quarter of 2025 (Q1 2025), two-thirds from neighbouring Asean nations.
A key focal point is the Johor-Singapore Special Economic Zone (JS-SEZ), which has emerged as a magnet for investments.
Amir Hamzah revealed that JS-SEZ has secured RM16.7 billion in committed investments since its launch in January, with a government target of RM100 billion by year-end.
"The Forest City Special Financial Zone within the JS-SEZ is particularly promising," said Amir Hamzah, citing its 20-year 0 per cent tax structure and the zone has drawn interest from 32 firms, with two already receiving regulatory approval to establish family offices.
Malaysia's economic outlook remains resilient, with GDP growth for 2025 projected at 4.5 to 5.5 per cent, while the country's Q1 2025 growth of 4.4 per cent year-on-year was driven by private consumption, investments, and the services and manufacturing sectors, which helped offset moderating trade.
On fiscal reform, Amir Hamzah reaffirmed the government's commitment to fiscal consolidation, targeting a deficit reduction to 3.8 per cent of GDP in 2025, down from 4.1 per cent in 2024.
Measures such as subsidy rationalisation for RON95 petrol and the expansion of the Sales and Services Tax aim to broaden Malaysia's revenue base, enabling continued investments in infrastructure, talent development, and innovation.
In the industrial and energy sectors, Amir Hamzah spotlighted three national strategies shaping Malaysia's future, including the National Industrial Master Plan 2030, which has attracted RM95 billion in investment over seven years, while the National Semiconductor Strategy secured RM55.8 billion in electrical and electronics investments in 2024.
Additionally, the National Energy Transition Roadmap aims for renewable energy capacity of 70 per cent by 2050, supported by flagship projects like hybrid hydro-floating solar initiatives.
Malaysia is also positioning itself as a green energy transit hub in Asean by spearheading the regional renewable energy grid, with the first phase involving exporting renewable energy from Vietnam to Singapore through Malaysia's grid, laying the groundwork for a scalable cross-border energy collaboration model.
Further aligning with Asean's ESG and carbon neutrality goals, Malaysia has launched sustainability initiatives through Bursa Malaysia, including the Centralised Sustainability Intelligence platform to enhance transparency and the Bursa Carbon Exchange to support high-quality carbon projects across the region.
Looking ahead, the upcoming Budget 2026 and the 13th Malaysia Plan will continue Malaysia's trajectory of reform, inclusivity, and resilience.
"During times of great volatility, the opportunities are most apparent," Amir Hamzah concluded. "Malaysia and Asean stand ready to embrace them together."
