Malaysia's still on track for developed nation status despite global uncertainty


PUTRAJAYA: Malaysia's economy has remained resilient despite global uncertainty and is on track to achieve developed nation status in the not-too-distant future, says Datuk Seri Amir Hamzah Azizan.

The Finance Minister II said the country's economic fundamentals had stayed strong even as the world grappled with trade tensions in 2025 and geopolitical conflicts in the Middle East this year.

"Malaysia's economy continues to expand despite operating in a highly uncertain global environment.

"I believe we are on the right track and the country will become a developed nation before too long," he said when delivering his opening remarks at the launch of the Government-Linked Enterprises Activation and Reform Programme (Gear-Up) 2026 Annual Report here on Friday (Aug 7).

Amir Hamzah said the economy grew by 5.21% in 2024 and 5.2% in 2025, before recording growth of 5.4% in the first quarter and 5.8% in the second quarter of 2026.

He said the sustained performance reflected the success of the Madani Economic Framework, which was introduced nearly three years ago to strengthen the economy while ensuring that the benefits of growth reached all Malaysians.

"The objective is not merely to expand the economy but to ensure the gains from economic growth improve the lives of the people through better jobs, wider opportunities and higher living standards," he said.

Amir Hamzah said Malaysia, as a trade-dependent economy, could not afford to stand still amid rapidly changing geopolitical and economic conditions.

"If we continue doing things the way we always have, our economy will not grow at the pace we need.

"We must strengthen our economic capabilities to create more quality jobs, attract investments and improve Malaysia's global competitiveness," he said.

He said good governance remained a key pillar of the framework, adding that government-linked companies (GLC) and government-linked investment companies (GLIC) had been entrusted with playing a larger role in driving the country's development agenda.

Amir Hamzah said GLICs currently managed more than RM2.2 trillion in assets, while GLCs accounted for more than 27% of Bursa Malaysia's market capitalisation.

Together, he said they provide more than 200,000 direct jobs and support over 40,000 vendors nationwide, giving them a significant footprint across the Malaysian economy.

"Every ringgit managed by GLCs and GLICs ultimately belongs to Malaysians, whether through Khazanah Nasional, Permodalan Nasional Berhad, the Employees Provident Fund or other government investment funds.

"We must therefore continue improving their performance and capabilities responsibly, without losing sight of the interests of the people," he said.

He expressed confidence that continued investments and reforms would enable GLCs and GLICs to fulfil their responsibilities while further strengthening the national economy.

 

 

 

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