Malaysia Morning Wrap | Public Bank Completes Acquisition of 44.2% Stake in LPI Capital Bhd

Prime Minister Datuk Seri Anwar Ibrahim announced that the government will continue to balance strengthening the country’s financial sustainability with supporting economic growth. He highlighted that the reform agenda will be intensified next year, with the economy expected to grow between 4.5% and 5.5%.

Anwar also introduced the Third Madani Budget, focusing on reinvigorating the economy, driving reforms, and prospering the populace. The budget aims to achieve key Madani Economy benchmarks. Fiscal reform efforts will be firmer and more targeted, with measures in place to gradually reduce the fiscal deficit rate from 5.5% of GDP in 2022 to a forecasted 3.8% in 2025.

Deputy Prime Minister Datuk Seri Fadillah Yusof highlighted Malaysia's potential to become a regional hub for electric vehicle (EV) production and innovation. He noted that the growing mobility industry offers significant opportunities for local manufacturers and SMEs to join the global supply chain. Malaysia’s National Investment Aspirations aim to attract high-quality investments and enhance local industries, positioning the country as a global supply chain hub.

At KLIMS 2024, Fadillah emphasized integrating local businesses into the global supply chain to boost economic growth. MAA President Mohd Samsor added that Malaysia’s automotive industry leadership in Southeast Asia is gaining momentum through technological advances and policy support. The sector contributes 4.0% to national GDP and employs over 700,000 people, serving as a key driver of economic growth.