Tan Sri Azman Hashim
President
MASSA 

Global growth for 2024 is projected by the IMF to be 3.2% compared to the previous year’s 3.3%. Across the year, disruptions to production and logistics, conflicts, civil unrest, and extreme weather events had dampened global economic performance against increasing demand for semiconductors and electronics, powered by significant investments in artificial intelligence.

Malaysia’s economy achieved a commendable GDP growth of 5.1% in 1H2024, and projected to increase to 5.3% in 3Q2024. The performance was attributed to stable labour market, moderate inflationary pressures, accommodative fiscal and monetary policies, net inflow of foreign funds and ongoing recovery in tourism. These will provide the momentum for the economy going forward.

Looking ahead into the coming year 2025, the global economy is projected by the IMF to grow by 3.2% in 2025 and headline inflation is expected to fall from 5.8% to 4.3% as the US and China economies are expected to moderate, but strong investments in technology, renewable energy and healthcare will present opportunities.

With the recent unveiling of Budget 2025, Malaysia’s GDP growth for 2025 is expected to be between 4.5 – 5.5%. This growth is anticipated to be driven by private consumption, consistent improvements in the labour market and wage growth. Supportive tailwinds include FDI in new sectors, the realisation of approved investments in the private sector, the global tech upcycle, the civil service wage adjustments catalysing increased consumption and strategic infrastructure projects (e.g. ECRL). Weighing against this outlook would be cost-of-living pressures, brought on by the potential implementation of RON 95 fuel subsidy rationalization, introduction & enhancement of tax revenue measures (e.g. alignment with Global Minimum Tax, sugar tax, high-value goods tax, SST), and rising healthcare costs and consequent medical insurance premiums amongst others.

As the world undergoes further geopolitical shifts and changes, I believe cross-border partnerships are more critical than ever. MASSA is supportive of Malaysia taking on a greater presence in the regional & international landscape, especially when Malaysia assumes chairmanship of ASEAN in 2025, while it joins the ranks of Thailand and Indonesia as a partner country of BRICS. In addition to the RCEP and the CPTPP, BRICS will offer another avenue / platform for Malaysia to further develop deeper trade, investment & financial ties with the member countries who, when combined, comprise nearly half of the global population & whose economies are already worth over USD 26 trillion (over a quarter of the global economy).

Encouraged by our Prime Minister of Malaysia’s stand on the Global South, MASSA is encouraged to further its collaboration with business associates in the South-South regions to highlight new, greenfield & tech-enabled opportunities for members by bringing to members’ attention, these emerging opportunities in the South-South markets.

Additionally, MASSA is also building a new platform to highlight the burgeoning domestic startup ecosystem, to introduce & highlight new, innovative and transformative homegrown solutions & ideas. This platform is an avenue for MASSA members to get acquainted with various innovators, entrepreneurs & founders for collaborative prospects in these startups’ expansionary phase, and to ultimately connect and grow in the markets of the South-South developing countries. These economies have the potential to leapfrog development and innovation through tech-forward solutions and we want Malaysia to be part of this growth phase.

I appreciate the continuing support and cooperation of all members, especially my fellow Executive Committee Members, Representatives from Government Ministries 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 want to thank all who have contributed valuable and insightful articles over 2024.

My best wishes to everyone, Merry Christmas and a happy, healthy and successful 2025!

Tan Sri Azman Hashim
President
28 November 2024