Economic Outlook

The Government anticipates that Malaysia’s Gross Domestic Product (“GDP”) for the year 2025 will grow within the range of 4.5 % to 5.5 %. With the implementation of Madani economy reforms, the Government is confident to achieve a growth rate closer to 5.5 %.

Projected expansions are expected across various economic sectors, with growth driven by a robust manufacturing sector and sustained development in services. Both public and private sectors are anticipated to experience consistent growth, primarily fuelled by private sector investments and ongoing public sector projects.

Revenue collection is projected to increase to RM322 billion for 2024, up from RM308 billion in 2023, with further growth expected to reach RM340 billion in 2025. This growth will contribute to reducing the fiscal deficit to 3.8 % of the GDP, compared to the target of 4.3 % for 2024.

The headline inflation is forecasted to slightly rise, remaining at a moderate level, primarily due to policy adjustments. While the labour market is expected to remain stable, the Government aims to address structural issues within the labour market, particularly concerning wages and productivity.