CYBERJAYA: Malaysia’s economy has continued to prosper with an estimated gross domestic product (GDP) growth of 5.8% in the second quarter despite facing global challenges that disrupted the supply of production inputs, says Akmal Nasrullah Mohd Nasir.
The Economy Minister said that this proved the success of the Madani government’s commitment to implementing targeted interventions that effectively address economic issues, especially navigating problems arising from the US-Iran conflict in the Straits of Hormuz.
The minister was commenting on the Department of Statistics Malaysia (DOSM) announcement that Malaysia’s gross domestic product (GDP) achieved 5.8% in the second quarter, 0.4% higher than the first quarter.
Akmal said this at a meet-the-entrepreneurs session titled “Startup Ecosystem Leadership: Voices, Vision and Aspirations,” organised by the Bumiputera Agenda Steering Unit (Teraju) here on Friday (July 17).
Also present at the event were Teraju chief executive officer Junady Nawawi and Bumi entrepreneurs under Teraju.
“DOSM released its latest preliminary findings on Malaysia's GDP for the second quarter, allowing us to assess the economy's performance during that period. Based on the preliminary estimates - since the official figures will only be released in August - the estimated GDP growth for the second quarter stands at 5.8%.
“This shows that the economy remains strong and resilient. At the same time, it demonstrates that the interventions we have introduced have helped ease concerns and significantly reduced disruptions to economic activities.
“From the onset of the conflict and throughout its duration, the government has closely monitored the situation. The government has been assessing developments on a weekly basis through key monitoring areas.
“Based on these assessments, we have implemented several measures to ensure that issues such as oil supply remain under control. To date there have been no significant disruptions to the country's fuel supply.
“The government's focus is to ensure that supplies remain sufficient while also safeguarding the affordability of essential goods, enabling the people to continue their daily lives despite the current economic challenges.
“Another priority is ensuring the availability of production inputs so that industries can continue operating without interruption.
“In terms of prices, we continue to manage the situation carefully to ensure that the burden on the people is minimised. We have also intervened to prevent industries from having to suspend operations due to disruptions in the supply of production inputs. We have managed these challenges successfully, preventing more severe impacts on the economy.
“Earlier, I shared the government's efforts to ensure that the economy continues to grow. Of course, we also have to face various challenges, particularly geopolitical tensions that put pressure on oil supplies and, consequently, have implications for prices. There are also disruptions to the supply of production inputs and other related challenges.
“At the same time, this serves as a reminder that we cannot become complacent. The conflict has shown no clear signs of ending, and tensions could escalate rapidly at any time. Therefore, we must remain vigilant and prepared for any challenges that may arise,” said Akmal.
He also pointed out that PETRONAS has secured a long-term commitment from alternative sources for Malaysia's petroleum supply.
“Malaysia should have sufficient petrol supply through to the end of the year. That said, both the government and the country must remain cautious. Whatever happens in the Middle East can escalate very quickly, and it is difficult to predict how the situation will develop. That is why the government remains highly vigilant and continues to focus on ensuring supply security, economic stability, and the well-being of the people,” said Akmal.
Earlier in his speech, Akmal called on small-time entrepreneurs to elevate their business skills and not be completely reliant on the government to ensure the continuity of their businesses.
“Investors are here for political stability and economic growth.
“I am not a minister set on only celebrating successes (of entrepreneurs).
“Achieving the level of public listing is not something that can be done in a year or two. There is no point in coming to the government if you don’t believe your products will make a breakthrough as it does not make sense for us to keep investing in you.
“If the products and services you offer have hit the wall, you have to rethink your products or marketing and find the best way to solve the problem.
“Find the missing links between the ministry and the businesses. Fight the real battle - to convince your funders why you are the best to resolve your issues,” said Akmal to dozens of bumiputra entrepreneurs who had gathered for the event.
