GOVT SERIOUS ABOUT ENSURING SUCCESSFUL ECONOMIC REFORMS - MOF

KUALA LUMPUR, May 24 (Bernama) -- The Ministry of Finance (MoF) is serious about ensuring the success of economic reforms in Malaysia, aiming to overcome the middle-income trap and stimulate the economy.

The MoF said the MADANI government’s pro-development policies and encouraging innovation had given new life to the national economy. 

“The encouraging response from investors in the early stages of this policy reform proves that the Malaysian economy is on the right track to reap more wealth in the coming years,” MoF said in a post on X. 

It also said the MADANI Economic framework aims for the national economy to grow at an average rate of 5.5 per cent annually in the medium term, driven by investments that stimulate the local business ecosystem.

The framework also outlines efforts to reduce the wealth gap to ensure equality and stability in society.

In the post, the MoF also shared statistics on Malaysia’s market performance in the early stages of economic reform, which is one of the best in ASEAN as of May 20, 2024.

This includes the performance of the stock index which increased by 11.9 per cent, the second best among the stock indices of ASEAN countries, indicating a sharp increase in the performance of the FBM KLCI stock index, compared to -2.7 per cent in 2023. 

The MoF also stated that the compound annual growth rate (CAGR) in foreign direct investment (FDI) was the best in four years at 22.4 per cent, surpassing Singapore’s 17.7 per cent.

In addition, Malaysia’s (company index) dividend yield of between four and five per cent is the best in the region apart from Singapore.

-- BERNAMA