M'sia's strong fundamentals will weather global shocks: PM
PETALING JAYA: Prime Minister Datuk Seri Anwar Ibrahim has assured Parliament that Malaysia remains resilient in the face of global economic uncertainties, including the recent announcement of retaliatory tariffs by the US.
He said Malaysia's solid economic fundamentals, strengthened by ongoing reforms under the Madani Economic Framework, has positioned the country to navigate both current and future challenges.
'With a resilient domestic economy and strong confidence, we are not easily swayed by external pressures or overwhelmed by global challenges.
'We have the figures and data, which can be managed and used wisely.'
Anwar highlighted Malaysia's strong macroeconomic performance in 2024, with GDP growth at 5.1%, surpassing the Budget 2024 forecast of 4.0–5.0%. This, he said marks a significant improvement from the 3.6% recorded in 2023.
'We are confident in our trajectory. The macroeconomic data, including the projected reduction of the fiscal deficit from 5.5% in 2022 to 3.8% in 2025, shows that our strategies are working.'
Anwar also noted that approved investments hit a record RM378.5 billion in 2023, the highest in Malaysia's history and a 14.9% increase compared with the previous year. He said this underscores strong investor confidence in the country's direction.
He acknowledged the seriousness of the imposed tariffs but stressed that the government would manage the situation pragmatically and in Malaysia's national interest, while preserving positive ties with all trade partners.
'The US is a key export destination and our largest source of foreign investments. We are addressing these challenges based on pragmatism and diplomacy.'
Anwar said Malaysia is not overly dependent on any single market. He cited growing exports to non-traditional markets such as Egypt, Pakistan and Cambodia, and reiterated that trade ties with Asean, China, Japan and regional partners remain strong.
The US tariff issue is expected to feature prominently at the upcoming Asean–Gulf Cooperation Council (GCC) Summit and Asean–China talks later this month.
Despite external pressures, Anwar said Malaysia's export performance remains solid, particularly in the electrical and electronics sector.
'We are seeing encouraging growth, and with the postponement of the tariff implementation, the short-term impact is expected to be manageable.'
Looking ahead, Anwar said the government remains committed to structural economic reforms under the Madani framework to ensure Malaysia builds a robust and diversified economy.
'We've developed a strong supply chain ecosystem and are actively diversifying our export products and destinations to avoid over-reliance on vulnerable sectors.'
He urged Malaysians to remain optimistic and united in the face of global uncertainties.
'We have faced greater challenges in our history, and we've always emerged stronger. This government will continue to lead with clarity, courage and compassion,' Anwar added.
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