Petaling Jaya: Alliance Bank Malaysia Bhd expects solid economic growth next year following the government’s recently announced Budget 2025.
“This budget is a testament to the government’s commitment to responsible fiscal management and continued prioritization of effective governance,” Alliance Bank Group CEO Kelly Kam Chee Keong said in a statement. This is proof that we exist.”
“We are confident that this budget will undoubtedly stimulate additional investment and demonstrate the government’s persistent efforts to strengthen the country’s economic fundamentals. “It is a progressive budget that strikes a wise balance between recruitment and the welfare of the rakyat,” he said.
Kam noted that the government has revised its 2024 gross domestic product (GDP) growth forecast to 4.8-5.3% from the previous 4.0-5.0%.
The government forecasts GDP growth of 4.5% to 5.5% in 2025, reflecting positive momentum in the economy.
The country’s economic growth rate is driven by healthy labor market conditions.
Although Malaysia’s unemployment rate further declined to 3.2% in August 2024, the labor force continued to grow, resulting in a high labor force participation rate of 70.4%.
Malaysia announced its 2025 budget on October 25, with the largest allocation ever of RM421 billion compared to RM408 billion in 2024.
Budget 2025 is built on the goals of revitalizing the economy, fostering transformation, and improving the overall well-being of our people. Rakyat. It highlighted the government’s proactive measures to reduce the fiscal deficit. It is projected to be 3.8% in 2025, compared to 4.3% in 2024.
Additionally, Budget 2025 includes the government’s commitment to boost investment through initiatives such as the new Investment Encouragement Framework, which introduces a RM1 billion Strategic Investment Fund to strengthen local capacity and encourage high-value activities. It reflects the intent.
Additionally, the government-backed investment company has committed to invest RM120 billion in domestic direct investment over the next five years.
Khazanah Nasional will establish a RM1 billion National Fund of Funds (NFoF) to help venture capital fund managers invest in start-ups.
The government agency recognizes the importance of the development of small and medium-sized enterprises and will provide loan facilities and financing support to this sector. This includes a RM3.8 billion fund by Bank Negara Malaysia to support expanded adoption of digitalization and automation.
To further the country’s net-zero ambitions, more than RM300 million is expected to be included in the National Energy Transition Program in 2025, compared to RM100 million this year.
Overall, Alliance Bank said the 2025 Budget covers a wide range of issues related to people and businesses.
The 2025 budget proposal includes: RakyatPromote the well-being of our citizens, accelerate our country’s economy, attract more investment, open up new markets and embrace digital adoption.
