GEORGE TOWN: Malaysia is expecting positive Gross Domestic Product (GDP) growth due to the inflow of foreign and domestic investments that remain strong, in addition to high demand for the artificial intelligence (AI), data centres and the semiconductor sectors that continue to drive the economy, says Datuk Seri Amir Hamzah Azizan.
The Finance Minister II said the government is working hard to ensure that engines driving the economy continue to operate smoothly, which is why the country remains attractive to investors.
He the country's GDP growth remained strong for the first quarter of the 2026, recording a 5.4% increase.
"Foreign direct investment (FDI) is coming in and it has started contributing to our GDP growth.
"Domestic direct investment (DDI) within the country remains strong as well, while public spending is still robust," he said during a press conference after visiting the Intel Pelican Project in Bayan Lepas on Monday (May 18).
He said the Federal government is pave the way for domestic investors, especially government-linked investment companies (GLIC) and government-linked companies (GLC) to invest in the country.
"We have an existing strong ecosystem especially here in the northern region, which can be attributed to investors' confidence in Malaysia.
"The government's focus is on further strengthening the ecosystem, attract investors, generate new jobs and ensure that those coming in can help Malaysia continue grow," he said.
Amir Hamzah said the government is focusing on increasing the people's income, including moving from minimum wage to living wage and salary increases for civil servants which has helped stimulate consumer spending.
"When income increases, the community's purchasing power also increases and this helps boost the domestic economy," he said.
Commenting on the technology sector, he said that demand for AI, data centres and semiconductors is still high, especially in the northern region of the peninsula, which has a complete industrial ecosystem.
"Malaysia continues to be the choice for global investors because it has a mature industrial chain and the ability to support the development of the digital and high-tech sectors.
"The government will continue to build an ecosystem that helps bring in investors, establish themselves and grow in Malaysia which will continue to strengthen the country's position as a regional semiconductor hub," he said.
