Finance Minister II Datuk Seri Amir Hamzah Azizan. - NORAFIFI EHSAN / The Star
KUALA LUMPUR: The government is confident that the country’s economic growth will reach the upper end of its targeted range, namely 4.8 per cent for 2025.
Finance Minister II Datuk Seri Amir Hamzah Azizan, who is also carrying out the duties and functions of the Minister of Economy, said this confidence reflects the continued resilience of Malaysia’s economic activity and rising investor confidence in the nation’s economic prospects.
He said that this position is also supported by the increase in approved investments for the most recent 21-month period (January 2024 to September 2025), totalling RM663.7 billion.
"Additionally, the inflation rate continued to moderate to 1.3 per cent in October 2025,” said Amir Hamzah during the winding-up session on the Supply Bill (Budget) 2026 for the Economy Ministry in the Dewan Negara today.
He said Malaysia’s economic growth in 2026 is expected to be driven by strong domestic expenditure, supported by moderate inflation and rising incomes owing to a stable labour market.
"The government will ensure that every ringgit spent brings tangible benefits to the people. The country’s fiscal position will continue to be strengthened through the enforcement of the Public Finance and Fiscal Responsibility Act 2023 (Act 850).
"The government is confident that the gross domestic product (GDP) growth forecast of between 4.0 per cent and 4.5 per cent for 2026 can be achieved,” he said.
Meanwhile, commenting on the 13th Malaysia Plan (13MP) and Budget 2026, Amir Hamzah stressed that the preparation of the annual budget has been fully aligned with the 13MP framework and the MADANI economic development agenda.
"The implementation of the 13MP projects and the annual budget also move in tandem to ensure policy effectiveness, spending efficiency and development impact that delivers direct benefits to the people,” he said.
Amir Hamzah emphasised that the involvement of local companies will be prioritised in industries with high growth and value, as well as in high-impact strategic sectors.
"From 2024 to September 2025, a total of RM5.54 billion in strategic semiconductor-related investments has been approved for five international and local companies in the semiconductor industry.
"These investments are expected to contribute to the growth of the semiconductor sector and ensure the production of more high-value ‘Made by Malaysia’ products and services,” he said. - Bernama
