Economic Growth In 2025 To Be Driven By Domestic Demand, Investments -- Alliance Bank

KUALA LUMPUR, Jan 23 (Bernama) -- Malaysia’s economy is poised for growth in 2025 as domestic demand is likely to strengthen further with sustained consumer spending and ongoing increase in investment activities, said Alliance Bank Malaysia Bhd. 

In a statement today, the bank said the country’s strong fundamentals and diversified economic structure, coupled with renewed government focus to spur higher economic growth, will help ensure Malaysia’s growth trajectory remains on the uptrend.

It anticipates Malaysia will achieve firm gross domestic product (GDP) growth in 2025, aligning with the government’s 2025 GDP growth projection.

Alliance Bank group chief executive officer Kellee Kam Chee Khiong said Malaysia’s economic growth momentum continues to be underpinned by the robust employment market, which has been growing from strength to strength.

“We are encouraged by the country’s improving unemployment rate of 3.2 per cent and the increasing labour force participation rate of 70.5 per cent in October 2024.

“This should bode well for Malaysia, given that domestic demand forms the bulk of our economy,” he said.

Meanwhile, Alliance Bank said private investments are expected to benefit from the improved external environment while the government continues its expansionary fiscal policy to drive economic growth.

“By assuming the chairmanship of ASEAN for 2025, Malaysia is well-positioned to enhance its global standing. ASEAN has consistently proven its resilience and appeal as a leading destination for foreign direct investment (FDI),” it said. 

More importantly, Alliance Bank noted that ASEAN’s rising prominence as a major hub for the global supply chain underscores its competitive advantage in positioning itself as a partner for multinational companies.

Moreover, the bank expects further progress in 2025 with more initiatives facilitating investment and trade as well as the smoother transfer of people and goods in the Johor-Singapore Special Economic Zone (JS-SEZ) to be announced.

Alliance Bank added that the ASEAN chairmanship and JS-SEZ come at an opportune time for Malaysia to further propel its economic growth and raise the country’s profile.

-- BERNAMA