2025 Budget to spur more investments, says Alliance Bank group CEO

27 Oct 2024

The 2025 Budget will encourage further investments and demonstrates the government’s continued efforts to strengthen the country’s economic foundations, said Alliance Bank Malaysia Bhd.

Alliance Bank group chief executive officer Kellee Kam Chee Khiong said it is a progressive budget that has a prudent balance between the economy, sustainability, the adoption of digital investments and wellbeing of the people.

“The budget is a testament to the government’s commitment to responsible fiscal management and continued priority for effective governance.

“It reflects the government’s intention to drive investments with initiatives such as the New Investment Incentive Framework, which will introduce a strategic investment fund of RM1 billion to enhance local capacity and encourage high-value activities,” he said today.

The bank said the budget includes key features aimed at prioritising the welfare of the people, accelerating economic growth, attracting greater investments, opening pathways to new markets and fostering digital adoption.

Alliance Bank expects strong economic growth in Malaysia next year.

The government has adjusted the gross domestic product (GDP) growth forecast for 2024 to between 4.8 and 5.3 per cent, with a 2025 projection of 4.5 to 5.5 per cent, indicating positive growth momentum.

“The country’s economic growth rate is driven by healthy labour market conditions. Positively, Malaysia’s unemployment rate in August 2024 declined further to 3.2 per cent while the labour force continues to increase resulting in a high labour participation rate of 70.4 per cent in August 2024,” it said.

Source: NST