Strong domestic demand key


— FAIHAN GHANI/The Star

KUALA LUMPUR: Malaysia needs to further strengthen domestic demand to reduce its reliance on external factors and ensure it achieves its economic growth target of 4% to 5% this year, UHY Advisory (KL) Sdn Bhd consultant Abraham Ngam Lee Liang says.

Ngam said the growth forecast remained realistic, provided domestic economic momentum was sustained through robust domestic demand, continued private and foreign investment, and government spending on development and infrastructure projects.

He said a stable labour market and resilient household spending would also be key to supporting growth and helping Malaysia achieve its target.

“Many companies are continuing to invest in Malaysia because they remain confident in the country’s stable economic prospects. Continued investment is crucial as it creates more job opportunities, raises productivity and supports overall economic growth.

“However, achieving the target also depends on global economic conditions and not solely on domestic factors,” he said during the Economic Aspirations Forum programme with Bernama TV last Friday.

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