KUALA LUMPUR: The Madani Economy Framework will anchor the comprehensive restructuring of the Malaysian economy, supported by several important transformations, such as having a revitalised industrial sector, said Bank Negara Malaysia (BNM).

Governor Datuk Abdul Rasheed Ghaffour said that within the framework, the industrial sector would be supported by quality investments.

“Malaysia’s economic vision also includes creating quality and higher paying jobs, positioning ourselves as a globally competitive investment destination, and becoming a climate resilient and greener economy.

“Besides, it will also improve fiscal governance and transparency, which will enhance confidence from investors and also credit rating agencies,” he said during a joint press conference by BNM and the Department of Statistics Malaysia on the country’s second quarter (2Q) 2023 gross domestic product (GDP) performance here, today.

Malaysia’s economy expanded by 2.9 per cent in 2Q 2023, supported by an improving labour market and the continued increase in domestic demand and tourism activities.

Abdul Rasheed said that among the key initiatives which would be vital in driving Malaysia’s economic vision includes the New Industrial Master Plan 2030 (NIMP 2030), the National Energy Transition Roadmap (NETR), and the tabling of the Fiscal Responsibility Act.

In the short term, he said Malaysia could expect to see positive support for growth from the implementation of several important catalytic projects under the NETR.

“The implementation of catalytic projects, such as those announced under the recently unveiled NETR Phase 1, will also provide support to growth in the medium term.

“In fact, some of these projects are already in progress, with more commencing next year,” he said.

Abdul Rasheed noted that growth continues to be supported by investment activities.

“Financing for capital expenditure remains forthcoming, as also investment intentions. Newly approved investments totalled RM71.4 billion in 1Q 2023.

“Going forward, the economy would benefit from the realisation of new investment and existing projects, particularly large infrastructure projects such as the ECRL and digitalisation projects.

“The progress of these investments is critical not just to support immediate growth but also to lift Malaysia’s future growth potential,” he said.

The BNM governor said household spending would remain the anchor of growth underpinned by continued employment growth, healthy household financial buffers, government policy measures, and easing price pressures.

“Household spending continues to expand, supported by wage growth and ample financial buffers. High-frequency data such as credit card spending and passenger car sales continue to record above pre-pandemic figures.

“In the second half of 2023, households will remain supported by recent measures announced by the government, namely the RM100 e-Tunai for B40s and M40s as well as RM300 and RM200 special assistance for civil servants and pensioners, respectively,” he added. – Bernama