Latest news with #RM77
The Star
4 hours ago
- Business
- The Star
Execution key for 13MP growth
KUALA LUMPUR: Economists are generally confident that the government can attain its 13th Malaysia Plan (13MP) goal of sustaining gross domestic product (GDP) between 4.5% and 5.5%, despite cautioning that banana skins lie ahead. At the parliamentary tabling of the 13MP yesterday, Prime Minister Datuk Seri Anwar Ibrahim revealed his administration's growth target up until 2030. The Prime Minister also pointed out the country is estimated to register a GDP growth of 5% on average between 2021 and 2025, the median value of the targeted growth range over the next five years. At the same, he is expecting gross exports to grow by 5.8% annually amid broader trade opportunities, while reducing the government's fiscal deficit to under 3% of GDP, after having lowered it from 5.5% in 2022 to 4.1% as of last year. 'The country's gross national income (GNI) per capita is forecast to increase to RM77,200 and is expected to exceed the threshold of a high income nation,' said Anwar, before commenting that the services, manufacturing, and construction sector remains as the main source of growth contributed by a shift to a value-creation based economy. Inflation is projected to remain stable between 2% and 3% annually. Anwar said Malaysia's economy grew at an average of 5.2% annually from 2021 to 2024, outpacing the global economic trend during the same period. The prime minister observed that the overall approved investments between 2021 to 2024 had achieved RM1.29 trillion, increasing at a rate of 23.1% each year. The total approved investments last year was the highest in history at RM384bil. Meanwhile, an economics research analyst from a foreign research house calls the GDP growth target 'realistic but ambitious', given both domestic strengths and external headwinds. 'The plan builds on a strong base, judging from Malaysia's economic performance over the past five years, despite global economic moderation. 'The continued focus on private-sector-led demand, high-value sectors, and digital transformation, particularly artificial intelligence (AI) adoption, reflects a deliberate strategy to deepen economic complexity and productivity—both crucial for sustaining mid-to-high growth,' he told StarBiz. On the other hand, he commented that achieving growth towards the upper end of the target would depend heavily on a number of factors, including private sector buy-in, in the context of the projected RM61bil in public-private partnership (PPP) participation. Anwar had estimated in his speech that an investment value of RM611bil is necessary to ensure the success of 13MP, as he called for a share of RM61bil from the private sector. On top of that, the analyst said global trade environment, political and policy stability, as well as effective execution of public investment plans including the RM430bil allocated for development spending, will also be strong influencing factors. Economist Geoffrey Williams concurred that the growth target is ambitious, as it was only days ago that Bank Negara downgraded its own 2025 GDP growth projection to between 4% and 4.8%. 'The underlying growth potential is more like 4% to 5%. However, there is no special concern about inflation in Malaysia, and recent price pressures were due to external factors. At present, inflation is steady and should continue to be stable,' he opined. Anwar said the government's commitment to fiscal consolidation is reflected in the reduction of new debt to RM76.8bil in 2024, down from RM99.4bil in 2022. 'The framework of the 13MP aims to restructure the economy, and no longer depend only on producing basic products like agriculture, industrial and services. Economic engagement needs to be rejuvenated by a shift to value creation in all sectors,' he added. Furthermore, he noted that fiscal reformation will be continued to ensure financial assistance will be channelled to the needy groups, even as the government continues to prioritise cost efficiency and value-for-money in all public infrastructure projects to optimise returns to the rakyat. On the government's other major objective of raising GNI per capita, the analyst from the foreign research firm sees clear challenges in accomplishing the goal while keeping inflation in check to within 2% and 3%. 'The first challenge is wage growth versus productivity. To sustainably raise GNI, Malaysia needs not just higher wages, but higher productivity per worker —especially in the services sector, which remains fragmented and uneven in quality. 'If wage hikes outpace productivity, it could fuel inflation,' he said. Secondly, he reckoned that food and energy security remain structural weak spots, as supply-side disruptions or fuel subsidy rollbacks could reignite inflation, affecting real income gains. The analyst said: 'While headline inflation is currently low, being 1.1% in June 2025, that may not reflect actual cost-of-living pressures in housing, transport, and food.' Additionally, he explained that human capital and skills mismatch could limit the country's ability to transition to high-value sectors, because without targeted upskilling or industry-academia alignment, GNI growth could stall, and structural unemployment risks may rise. To counter these possibilities, he suggested Putrajaya could double down on upskilling programmes linked to high-growth sectors such as semiconductors and AI, and maintain subsidy rationalisation with a social safety net to prevent inflation shocks from disproportionately hitting the B40 and M40 'Moreover, the Madani administration could also promote research and development incentives and innovation funding to spur productivity-led growth, not just capital accumulation,' he said. Separately, Anwar said the government is also targeting a contribution of 50% to GDP for micro, small and medium enterprises (MSMEs) by 2030, underpinned by the creation of a more progressive MSME ecosystem. This will include the scaling up of MSMEs by the support and active involvement of government-linked companies, through capacity development programmes, digitalisation and operation improvement. 'Among the initiatives that have been put into place in line with this objective are the Strategic Co-Investment Fund, the strengthening of working capital SME Capacity and Capability Enhancement Scheme,' he said.
New Straits Times
18 hours ago
- Business
- New Straits Times
13MP: Malaysia eyes up to 5.5pct GDP, 6.0pct private investment growths annually by 2030
KUALA LUMPUR: The 13th Malaysia Plan (13MP), covering 2026 to 2030, has set ambitious yet attainable targets aimed at boosting economic growth, raising household income and ensuring inclusive development across sectors. Among the goals, the country's gross domestic product (GDP) is projected to grow between 4.5 and 5.5 per cent annually. Sector-wise, agriculture is expected to expand by 1.5 per cent a year, mining by 2.8 per cent, construction by 5.0 per cent, manufacturing by 5.8 per cent and services by 5.2 per cent. To drive economic expansion, total investments are projected to grow 5.5 per cent annually. Private investment is targeted to grow at 6.0 per cent annually, amounting to RM417.9 billion while public investment is expected to rise by 3.6 per cent or RM112.9 billion annually. Malaysia's gross exports are forecast to increase 5.8 per cent annually by 2030 with the current account balance to gross national income (GNI) projected to reach 2.2 per cent by 2030. Other economic targets include increasing labour productivity by 3.6 per cent annually, achieving full employment by 2030, and keeping inflation within 2.0 per cent to 3.0 per cent. The fiscal deficit is expected to fall below 3.0 per cent by the end of the plan period. GNI per capita is projected to reach RM77,200, with employee compensation to GDP targeted at 40 per cent. The average monthly household income is expected to rise to RM12,000, while the absolute poverty rate is targeted to drop to 4.7 per cent. To strengthen socio-economic resilience, the plan targets a 1.1 per cent annual population growth and a 20-year increase in post-retirement life expectancy by 2050. The Malaysia Well-being Index (MyWI) is projected to grow by 1.6 per cent annually. In education, Malaysia aims to align its Programme for International Student Assessment (PISA) and Trends in International Mathematics and Science Study (TIMSS) scores with global benchmarks. It also targets 70.1 per cent of graduates to work in fields related to their qualifications by 2030. In healthcare, the plan aims to reduce out-of-pocket expenses and lower the percentage of adults with health risk factors to 32 per cent. By 2030, the government aims to deliver 500,000 affordable housing units to meet rising demand and ensure broader homeownership access.
New Straits Times
21 hours ago
- Business
- New Straits Times
Kuala Lumpur Convention Centre wins six major events, projects RM77.5mil economic impact
KUALA LUMPUR: The Kuala Lumpur Convention Centre (the Centre) has secured six major international conferences in the first half of the year, cementing Malaysia's reputation as a premier destination for world-class business events. These high-impact conferences - spanning aviation, global health security, clean energy, evidence-based healthcare, and women's health - are set to welcome more than 6,150 delegates in 2026 and 2027, generating an estimated RM77.5 million in economic impact for the country. With these latest wins, the Centre continues to play a vital role in elevating Malaysia's international presence, while contributing meaningfully to the country's journey toward innovation, sustainability, and economic transformation. John Burke, general manager of the Centre, described the bid wins as a powerful endorsement of Malaysia's capacity, connectivity, and collaborative ecosystem. "Beyond the RM77 million in direct economic contribution, these events will spark new partnerships, accelerate talent development, and showcase our nation's commitment to driving solutions for aviation safety, global health security, net-zero technology and women's health," he said in a statement. The successful bids reinforce the Centre's evolving role - not merely as a venue, but as a strategic enabler of Malaysia's business events sector. These conferences align closely with the New Industrial Master Plan 2030, which prioritises growth in healthcare, green energy, and life sciences. Among the confirmed conferences are the Global Health Security Conference 2026, Energy Tech Summit Asia 2026, and the 85th FIP World Congress of Pharmacy and Pharmaceutical Sciences 2027. Each will convene global experts and thought leaders while driving substantial tourism and business opportunities across accommodation, dining, transport, and attractions. Located in the heart of Kuala Lumpur, the Centre offers over 34,000 square metres of flexible, modern event space. Its strong credentials in sustainability, inclusivity, and service excellence have been key to securing these prestigious events. "The Centre's success also reflects the strong synergy between venue, destination and industry partners, particularly in bidding for and hosting large-scale international events. We look forward to working with each organiser to deliver an unforgettable Malaysian experience that inspires repeat visitation and long-term investment," said Burke.
Focus Malaysia
2 days ago
- Business
- Focus Malaysia
Time for Malaysians to get used to 'gov't loans come down can also mean national debt goes up'
SUCH seems to be the mind-boggling Economics 101 situation confronting main-on-the-street Malaysians after it was revealed yesterday (July 29) that the Federal government's debt rose to RM1.3 tril as of end-June 2025, up from RM1.25 tril as of end-2024. The increase was apparently driven by borrowings to finance fiscal obligations and fund development projects, according to Deputy Finance Minister Lim Hui Ying. 'Government loans are used prudently to finance strategic development projects such as infrastructure, education, health and social protection programmes,' she told the Dewan Rakyat yesterday (July 29) in response to a parliamentary question by DAP's Beruas MP Datuk Ngeh Koo Ham' on the government's effort to reduce federal debts and liabilities. However, the government's liabilities shrank to RM384.6 bil by March 2025 compared with RM384.8 bil as of end-2024. To ordinary Malaysians, this piece of news came as a shocker for just over the weekend (July 27), Prime Minister Datuk Seri Anwar Ibrahim had personally warned that unchecked national debt could burden future generation of Malaysians, stressing his government's duty to rein in borrowing before it spirals further. He went on to stress that his persistent warnings about national debt were driven by a responsibility to prevent the burden from being inherited by future generations. As Malaysia's debt level remains high, PMX who is also the Finance Minister further justified that managing it responsibly is crucial to restoring investor confidence and safeguarding the country's economic future. 'Bullets for opposition' Above all else, both the Information Department and PKR Youth were found blowing the trumpet on the Madani government's behalf by citing PMX boastfully announced that 'new debts have been successfully reduced to RM77 bil in 2024 from RM93 bil (2023) RM99 bil (2022)'. 𝙆𝙀𝙍𝘼𝙅𝘼𝘼𝙉 𝘽𝙀𝙍𝙅𝘼𝙔𝘼 𝙆𝙐𝙍𝘼𝙉𝙂𝙆𝘼𝙉 𝙃𝙐𝙏𝘼𝙉𝙂 𝘽𝘼𝙃𝘼𝙍𝙐 𝙉𝙀𝙂𝘼𝙍𝘼 📉 Hutang baharu negara: • 2022: RM99 bilion • 2023: RM93 bilion • 2024: RM77 bilion 1/2 — AMK Malaysia (@AMKMalaysia) July 21, 2025 📉 Hutang Baharu Negara Berkurang! 💪🇲🇾 🗣️ YAB Dato' Seri Anwar Ibrahim: 💵 Hutang baharu 2024 turun ke RM77 bilion. 📉 Berbanding RM99 bilion pada tahun 2022! 🎯 Tanda komitmen kerajaan untuk: ✅ Urus kewangan negara secara berhemat. 📊 Kawal defisit, stabilkan ekonomi. — Jabatan Penerangan Malaysia ❤️🇲🇾 (@JPenerangan) July 22, 2025 Inevitably, unless the Madani government's communications machinery can find a way to explain in layman's term differentials between PMX's narrative of government borrowings have come down vs soaring national debt level, financially-savvy detractors will surely prey on the latest revelation for political mileage. 'Today the PH (Pakatan Harapan) government admitted that the government's debt has reached RM1.3 tril,' penned former UMNO supreme council member Isham Jalil on his Facebook post. 'In the past six months alone, they have added RM50 bil in debt. They said it was for project spending. Once again, I ask, can you please list the projects above RM100 mil that you spent and who got these projects? Added the once special officer to incarcerated former premier Datuk Seri Najib Razak: 'And was it obtained through open tender, selected tender or direct negotiation? Where has the hundreds of billions that you borrowed over the past two-and-a-half years gone to? The rakyat will have to pay these debts later.' Interestingly, another former Najib 'lieutenant' Datuk Eric See-To also took a jibe at the Madani government that ''shall not add' means 'to add RM290 bil' over a period of 30 months'. 'Tidak akan tambah' bermaksud 'tambah RM290 bilion dalam tempoh 30 bulan'. Dec 2022 (sebelum Madani): – Hutang langsung: RM1.079.6b – Liabiliti Kerajaan: RM319.6b – Jumlah hutang & liabiliti Kerajaan = RM1.399 trilion Jun 2025 (lepas 30 bulan Madani): – Hutang langsung:… — Eric SeeTo Lim Sian See (@LimSianSeeEric) July 29, 2025 But the former Barisan Nasional (BN) strategic communication deputy director who also goes by the nom de plume Lim Sian See was checkmated by a seemingly neutral governance critic. 'Eric, twisting the numbers won't change the facts. If you want to play propaganda, let's have some basis,' argued ksampoh@MyOwn Inc (@ksampoh). 'Debt is rising? Yes. But not for pink diamonds, luxury ships or condos. This time it's going up because we want to take care of the people, continue the nation's operations and absorb the global impact. 'Eric, if you're really smart, don't just make noise on Twitter but offer a solution.' By the way, the learned commenter further 'counter-swiped' See-To on the need 'to add RM378 bil over the next nine years (to the national debt) to offset 1MDB, SRC, Aabar & other fraudulent investments'. – July 30, 2025
Borneo Post
6 days ago
- Business
- Borneo Post
Focus on real progress for Sarawak, not finger-pointing over MA63, says Dapsy man
Wong King Yii KUCHING (July 26): There is a need for greater accountability and focus on real progress in addressing Sarawak's development needs and Malaysia Agreement 1963 (MA63) rights, rather than placing blame on current federal efforts. In stating this, Democratic Action Party Socialist Youth (Dapsy) Sarawak treasurer Wong King Yii said Kota Sentosa assemblyman Wilfred Yap was wrong to question the significance of the federal government's efforts to reduce national borrowings. 'With respect, YB Wilfred Yap's argument that such efforts are meaningless if Sarawak continues to be sidelined seems somewhat misplaced,' he said in a statement issued in response to Yap's recent remarks. Wong said reducing borrowings from RM99 billion in 2021 to RM77 billion in 2023 was not 'meaningless', but a sign of responsible governance. 'It means less public debt, stronger investor confidence, and a healthier economy for future generations. 'If anything, this is precisely the kind of financial discipline we need to ensure there's actually money left for meaningful development, including in Sarawak,' he said. Wong said the state government, of which Yap's Sarawak United People's Party (SUPP) is part of, had enjoyed decades of full political alignment with the federal government. He claimed, however, that during that time, basic infrastructure, healthcare, education, and equitable development in many parts of Sarawak, had been neglected. 'The question isn't why Sarawak is only getting attention now, it's why nothing was done before.' Wong credited the Unity Government for several key developments benefitting Sarawak, including the handover of Bintulu Port and MASwings to the state; the historic Petronas-Petros settlement; and increased annual grants under Article 112D of the Federal Constitution. 'Importantly, all of this was achieved while the federal government reduced borrowing – not increased them,' he added. Wong noted Yap's recent public comments about the MA63 and called for Sarawak's rights to be upheld, saying that Dapsy welcomed all views on the issue. However, Wong said Sarawakians rightfully expected more than just statements; rather, they expected action. 'Public expressions of concern must be accompanied by meaningful efforts, especially when the Premier of Sarawak is already actively engaged in ongoing MA63 negotiations with the federal government,' he said. Wong urged Yap to reflect not only on federal policy matters, but also on the role his own coalition in the Sarawak government could play, claiming that there had been many opportunities to act on MA63 within the state's own administration. 'Let us all do our part to move beyond rhetoric and toward real outcomes for the people of Sarawak,' he said. DAPSY lead MA63 Wilfred Yap
