MITI maintains investment growth projection at 5.0 % for 2024 – Tengku Zafrul
18 Jul 2024
The Ministry of Investment, Trade and Industry (MITI) maintains the investment growth projection at 5.0 per cent this year despite the domestic economic recovery environment.
Its Minister Tengku Datuk Seri Zafrul Abdul Aziz said the target, set by the Malaysian Investment Development Authority (MIDA), is in line with the Gross Domestic Product (GDP) growth target.
“In the first quarter of 2024 (1Q 2024), we have made an announcement, an increase (in investment) of 13 per cent compared to the same quarter last year. For now (the investment target) is officially at 5.0 per cent, but we will review this based on the pipeline.
“At the moment, the 5.0 per cent (target) is based on the correlation with the GDP target of between 4.0 and 5.0 per cent…but we will see, there are things that are out of our control,“ he told reporters after presenting the ministry’s report card for the second quarter of 2024 (2Q 2024) here, today.
Moving forward, he said the digital and green economy sectors will be the key drivers of Malaysia’s economic growth, apart from the services sector.
“The digital economy has already surpassed our previous (growth) target of 22.6 per cent, growing at 23 per cent as of 2Q 2024, and we have revised the target up to 25.5 per cent of GDP by 2025,“ he said.
Regarding the impact of the strengthening ringgit against the US dollar, Tengku Zafrul said the ringgit is not the only primary indicator in investor evaluations.
He pointed out that investors would consider long-term prospects and something reliable in making their decisions.
He said the situation is different when it involves investments in the capital market, whereby fluctuations in the ringgit would have a quick effect.
When foreign investors decide to invest in the country, it would take about two years or more to see the impact, he added.
Meanwhile, on Malaysia’s intention to join the BRICS (Brazil, Russia, India, China and South Africa) intergovernmental organisation, Tengku Zafrul said the discussion is currently led by the Ministry of Foreign Affairs (MOFA) as the pact is not an economic bloc per se like other economic pacts joined by Malaysia.
“For now, BRICS is more like a diplomatic grouping. In the future, if there any plans to include trade agreement or economic cooperation (in the pact), then MITI will be involved (in a bigger role).
“At this stage, MITI is not leading it, usually we will lead like other blocs as the economic element for this bloc is more indirect. Eventually, we will lead it as at the end of the day, trade and investment cooperation will make sense for it to be sustained. But for now we are in the team led by MOFA,” he said.
Source: Bernama
