Economic Outlook
2024
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Under Secretary,
Fiscal and Economics Division,
Ministry of Finance Malaysia,
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Precint 2,
Federal Government Administrative Centre,
62592 Putrajaya.
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The Economic Outlook is an annual publication released on the same
day as the Annual Budget.
The 2024 edition is released on 13 October 2023.
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PREFACE
MINISTER OF FINANCE
MALAYSIA
The global economy continues to traverse through an environment filled with challenges
since the COVID-19 pandemic. Deepened geopolitical tensions and persistent tightening
of monetary policies to address inflation, have increased the risk of a worldwide
slowdown. The circumstances are aggravated by uncertainties in major economies, mainly
impacting developing nations as well as weakening trade dynamism against a backdrop
of supply chain disruptions and ongoing trade tensions.
Malaysia is not immune from these global developments, given the degree of openness
in our economy and financial system. The diversified structure of the Malaysian economy
and our solid fundamentals built on the blood, sweat and tears of the rakyat over the
years have bolstered the economy’s resilience and positioned us on a steady growth
path. These positive factors, supported by firm policies and action plans anchored on the
framework of Ekonomi MADANI, as well as the continuous implementation of pragmatic
measures and initiatives laid by the Government, will keep our economy strong and
resilient.
While the external sector remains important, growth is increasingly driven by domestic
demand. The nation’s manageable inflation, favourable labour market conditions, healthy
foreign reserves, current account surplus and high national savings, robust financial
sector and well-developed capital market, continue to sustain the economic momentum.
Amid the global economic slowdown, the Malaysian economy recorded a growth of 4.2%
in the first half of 2023 and is expected to expand at approximately 4% in 2023.
The success in charting our economic growth and overcoming crises would not be
possible without the sacrifice and dedication of the rakyat. The Government remains
resolute to ensure all Malaysians are able to enjoy the fruits of the nation’s wealth and
prosperity through sustainable and inclusive growth. Recognising this, the framework of
ECONOMIC OUTLOOK 2024 iii
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“Ekonomi MADANI: Memperkasa Rakyat” was formulated with the utmost priority to serve
the rakyat. The framework will serve as a foundation to the recently announced policies,
including the National Energy Transition Roadmap, the New Industrial Master Plan 2030
and the Mid-Term Review of the Twelfth Malaysia Plan. In this regard, the Government
has envisaged seven targets to be achieved by the country within the next ten years.
These initiatives are anticipated to drive the nation’s economy, with a projected growth
rate of 4% to 5% in 2024.
The wellbeing of the rakyat remains this Government’s utmost concern and priority. The
prosperity of the nation must benefit all segments of society. Thus, it is vital to ensure
that the economic pie distribution is fair and equitable, prioritising excellent healthcare
services and quality education for all Malaysians. In the context of employment and
wages, salaries must commensurate with workers’ productivity. In addition, providing
better social protection and public amenities, including transport, water and electricity
supply, as well as broadband services, will create more equitable opportunities to
improve the rakyat’s quality of life. An agile public service delivery supported by the
digitalisation agenda is imperative to drive economic transformation. The Government
will also focus on progressively enhancing Malaysia’s fiscal sustainability by mobilising
revenue as well as optimising expenditure to address leakages and wastages.
The year 2024 is envisaged to be a promising year for Malaysia. The execution of several
policies announced recently, including the implementation of projects under the Mid-
Term Review of the Twelfth Malaysia Plan, will solidify Malaysia’s efforts in becoming
Asia’s most dynamic economy in the near future. While we may encounter challenges
and structural changes, our resilience and capacity to innovate are formidable. It is a
collective mission for all Malaysians to unite in harmony, embrace changes and prioritise
sustainable growth strategies. Together, we shall chart a successful course ahead, that
reaps equitable benefits for all and secures a brighter future for our beloved nation.
ANWAR IBRAHIM
13 October 2023
iv ECONOMIC OUTLOOK 2024
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TH E E CO N O M Y 2 0 2 4
in constant 2015 prices
(share to total in %)
Public
Investment1
Exports of 2.9%
Services
6.5%
Public
Consumption
7.8%
Private
Private Consumption
Investment1 38.2%
9.7%
DEMAND
RM2,656,097
MILLION
Exports
of Goods
34.9%
Mining Construction
3.7% 2.3%
Agriculture
3.8%
Imports
of Services
7.8%
Services
37.4%
Manufacturing SUPPLY
14.7% RM2,656,097
MILLION
Imports
of Goods
1
Includes change in stocks 30.3%
Source: Ministry of Finance, Malaysia
ECONOMIC OUTLOOK 2024 v
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