By Dr Faiz Masnan

Starting this year, we anticipate a surge in production driven by an increase in valuable resources. These resources, integral to the factors of production, are experiencing enhancements in both quality and quantity. This augmentation encompasses labour, capital, land and entrepreneurs.

Notably, entrepreneurs play a pivotal role, leveraging technological advancements, innovative methodologies, competitive strategies and subsidies to amplify the production of goods and services.

Entrepreneurs stand as significant catalysts for economic growth

Entrepreneurs stand as significant catalysts for economic advancement. Through continuous innovation and competition, they constantly redefine the limits of what is achievable in the market.

According to recent economic forecasts, Malaysia’s economy is expected to escalate by 4.27 per cent in 2024. It’s worth noting that in 2023, Malaysia’s economy grew lower than its expectation. Economic growth was expected to stand at 4.0 per cent but only stood at 3.7 per cent.

In the face of global competition, entrepreneurs are compelled to drive innovation, optimise costs, and enhance quality – key drivers of GDP growth. The industry’s demands prompt firms to streamline processes, diversify product offerings, and engage in economic activities, ultimately benefiting consumers.

Efforts essential for economic growth

In the pursuit of staying competitive against international brands, entrepreneurs are spurred to foster innovation, implement cost-effective measures, and elevate product quality. These efforts, essential for economic growth, attract investment and contribute to capital formation which is crucial for sustained economic expansion.

Investor funding provides the financial resources necessary for entrepreneurs to develop and scale their ventures. Subsequently, successful enterprises often reinvest their profits, further expanding operations and stimulating additional economic activity.

Tourism factor contributor for economic growth

Another significant contributor to economic growth is the tourism sector. From a multifaceted perspective, tourism directly fuels economic expansion through the expenditures made by tourists on accommodations, transportation, dining, entertainment and souvenirs.

Local entrepreneurs play a pivotal role in enhancing the attractiveness of our country’s offerings, contributing to increased demand in the tourism sector. Moreover, this sector serves as a major employer, creating jobs across various facets mentioned earlier, all requiring a skilled workforce to deliver quality experiences to travellers.

This, in turn, generates employment opportunities, mitigates unemployment issues, enhances workforce participation, fostering economic stability and income growth.

Malaysia, with its unique multicultural identity, stands out in Asia. Preserving cultural landmarks, traditions, and ecosystems, the country is poised to embrace sustainable tourism practices, further contributing to long-term economic growth.

-- BERNAMA

Dr Faiz Masnan is a Senior Lecturer with the Faculty of Business & Communication, University Malaysia Perlis (UniMAP).