HSBC Bank Malaysia Bhd CEO Datuk Omar Siddiq. - SAMUEL ONG/The Star
KUALA LUMPUR: Malaysia is well-positioned to reap significant benefits from the opportunities arising from the global economic shift, said HSBC Bank Malaysia Bhd (HSBC Malaysia) at the recent HSBC Asian Business Forum.
In a statement today, HSBC Malaysia said organisations must prepare for growth and expansion and step up future-proofing measures to boost competitiveness in 2024.
Its chief executive officer, Datuk Omar Siddiq, said that Asia continues to offer prospects for long-term growth driven by sustained foreign direct investment, a rapidly growing consumer base, and opportunities in the complex manufacturing and services industries.
He added that a good portion of the growth was powered by Asean, which is becoming increasingly significant in the face of several trends, such as the reorientation of supply chains, the rapid acceleration of digitisation, and the fight against the threat of climate change.
"And positioned in the epicentre of several of these trends is Malaysia, which continues to be a top 25 trading nation with substantial investment potential and has long established itself as a prime destination for companies seeking to grow regionally,” he said.
Deputy Minister of Investment, Trade and Industry Liew Chin Tong officiated the bank’s annual flagship event.
Liew said three factors were critical to Malaysia’s economic growth, namely the nation’s strategic location, pushing its labour out of the middle-income trap and across the high-income threshold and thirdly, focusing on higher growth areas.
HSBC Global Research has recently raised its growth forecast for Malaysia to 4.1 per cent from its previous estimate of 3.8 per cent for 2023. However, it retained its 2024 forecast at 4.5 per cent, accounting for the better outturn in the third quarter and a gradual uplift in the trade cycle.
The bank said that reviving private investment is essential to Malaysia’s continued growth.
"Foreign and domestic direct investment was required to boost exports, generate jobs and promote economic growth,” it said.
HSBC Malaysia said that achieving this would require businesses in the country to make significant investments for expansion, enhance connectivity to fortify ties with other trading partners and pursue more opportunities.
"Companies should consider investing in high-value-added technology, which may include artificial intelligence, big data analytics, and robotics. At the same time, it would also be crucial for companies to reinvent their workforce,” it added. - Bernama
