KUALA LUMPUR: The Investment, Trade and Industry Ministry (Miti) is maintaining its investment-growth projection at 5% this year despite the domestic economic recovery.
Miti 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 (1Q24), we have made an announcement, an increase (in investment) of 13% compared to the same quarter last year. For now (the investment target) is officially at 5%, but we will review this based on the pipeline.
“At the moment, the 5% (target) is based on the correlation with the GDP target of between 4% and 5%, 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 here.
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 surpassed our previous (growth) target of 22.6%, growing at 23% as of 2Q24, and we have revised the target up to 25.5% of GDP by 2025,” he said.
On the impact of the strengthening ringgit against the US dollar, Tengku Zafrul said the local note is not the only primary indicator in investor evaluations.
He said 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.
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 Foreign Affairs Ministry, as the pact is not an economic bloc per se like other economic pacts joined by Malaysia. — Bernama