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If Selangor Fails, Malaysia's Economy Will Collapse: MB

Business Today ·  08/02 03:52

Selangor cannot afford to fail as it is the heartbeat of the national economy, Menteri Besar Dato' Seri Amirudin Shari said today, in highlighting the importance of the state to Malaysia.

He said Selangor's massive contribution to the country's gross domestic product (GDP) today meant the federal government is heavily reliant on the state for the nation's continued prosperity."If our economy fails, the federal economy will collapse, and the effects will be felt by the whole society," he said in his speech.

On July 2, the Statistics Department released its report showing Selangor remained the main contributor to the national economy, pushing 25.9 per cent to Malaysia's 2023 GDP.

The state was also the primary economic powerhouse in recent years, with a GDP contribution of 23.7 per cent in 2018, 24.1 per cent in 2019, 24.3 per cent in 2020, 24.8 per cent 2021, and 25.5 per cent in 2022.Selangor's impressive performance has also seen the state achieving high-income status, according to recent data from the World Bank.

Despite this, Amirudin said the state cannot afford to rest its laurels by rinsing and repeating old formulas and expecting different results.

"We need to adapt to changes and be hands on. Which was why, when I took over the administration in 2018, I introduced economic clusters that focus on activities based on the uniqueness of specific localities and regions."

Amirudin said this drive to always be on top was among the reasons the First Selangor Plan was launched in July 2022, a document he described as a direct response to pressing issues then, including the rapidly changing global market, the Covid-19 pandemic, and the nation's political instability."We focused on four strategic themes — strengthening the economy, ensuring social inclusivity and well-being, driving environmental sustainability and providing good and effective governance."

Today, he said, the main challenge Selangor faces is its growing population, due to migration from other states.

The menteri besar noted that while Selangor's population stood at 4.8 million people in 2008, this figure has ballooned to about 7.4 million today.

Coupled with the state's ageing population, Amirudin said the administration must find solutions to these new challenges and maintain productivity.

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