Tan Sri Azman Hashim
President
MASSA 

2023 saw the global economy traversing a challenging environment of slow post-pandemic global recovery despite hopes of a return to pre-pandemic levels. Heightening geopolitical tensions, ongoing wars & humanitarian crises in the Russia-Ukraine War, the Israel-Palestine conflict, supply chain vulnerabilities, food shortages due to climate change, the tightening of financial markets in addressing elevated inflation and weakened trade dynamism forms the backdrop of a year in review of soft global growth projected to expand at 3%.

Malaysia’s performance saw its GDP grow to 3.3% in the third quarter (3Q2022: 14.2%) supported by expansion in domestic demand, continued improvement in labour market conditions and recovery across industries including tourism and construction. Nevertheless, headwinds remain present as Malaysia weathers weakened external demand for goods exports, contractions in natural gas production and vulnerabilities in the manufacturing sector amid tech downcycle. Headline inflation is expected to average between 2.5% – 3.0% for 2023. Overall, underpinned by domestic demand the Government anticipates GDP growth for 2023 to register an estimated 4%.

Moving forward into 2024, global growth is expected to continue to moderate, alongside global inflation and trade. Headwinds from trade restrictions, climate change, escalation of geopolitical tensions, tightening in monetary policy and ongoing shifts in consumption from goods to services are expected to impact the economic outlook for 2024.

The Malaysian economy in 2024 is expected to see broad-based growth of 4% – 5% led by resilient domestic consumption, improved export activities and the Government’s initiatives and efforts to encourage private sector dynamism. Budget 2024 (Belanjawan MADANI Kedua), the largest budget tabled in Malaysia’s history, aims to boost economic activity, position Malaysia as an economic champion in the region and synergise with the Government’s initiatives and policies.

The Government is taking concerted efforts to promote and accelerate ESG compliance as Malaysia works towards achieving its goal of net-zero emissions by 2050. This commitment is evident in the introduction of the National Energy Transition Roadmap (NETR), the New Industrial Master Plan (NIMP) 2030, the 12^th Malaysia Plan Mid-Term Review and the i-ESG Framework for the Manufacturing Sector introduced by the Ministry of Investment, Trade and Industry (MITI). MASSA will support and complement these initiatives.

MASSA will also step-up its collaboration with associates in the business community and in the South-South regions to highlight innovative solutions and business linkage opportunities for members, especially in the areas of sustainability, ESG, green & circular economy and digitalisation which can help businesses leapfrog innovation and remain resilient amidst the present economic backdrop and outlook. MASSA will also be bringing to members’ attention information on new and emerging non-traditional markets in the South-South developing countries by working together with our partners locally and abroad.

I appreciate the continuing support and cooperation of all members, especially my fellow Executive Committee members, and ex-officio partners with your attendance, support and contributions at our regular meetings & events and not forgetting the sponsors of our website.

I also wish to thank all who have contributed valuable and insightful articles to our Newsletter for 2023.

My best wishes to everyone Merry Christmas and a happy, healthy and successful 2024!

Tan Sri Azman Hashim
President
18 December 2023