Malaysia has potential to become high-income nation by 2030: Amro

Investment, Trade and Industry Minister Tengku Datuk Seri Zafrul Abdul Aziz said the recent report by the Asean+3 Macroeconomic Research Office (Amro) on Malaysia’s growth underscores its potential to become a high-income nation by 2030, driven by significant foreign direct investment (FDI) inflows.

He said plans are in place to enhance the country’s electrical and electronics (E&E) ecosystem, improve business conditions, and prepare for global minimum tax implementation in 2025.

He said Malaysia is dedicated to attracting hightechnology companies and encouraging value chain advancement within existing industries.

“Efforts are also ongoing to boost the semiconductor ecosystem, through the New Industrial Master Plan (NIMP) 2030, which includes attracting wafer fabs and advancing packaging, assembly, and testing capacities, to reinforce Malaysia’s global industry position,“he said in a reply to a posting on X.

Tengku Zafrul was replying to a posting by a local financial media quoting Amro on the Malaysian economy and the year-end peak of the semiconductor upcycle.

According to Amro, Malaysia’s gross domestic product is expected to grow by 5% this year 2024, outpacing Asean’s average of 4.8%.

Amro also said economic growth in the regional bloc is expected to improve, premised on higher exports on the back of the semiconductor upcycle, continued strength in the US goods consumption and robust demand for travel and services.

Apart from that, Tengku Zafrul said Semiconductor Equipment and Materials International has reported a global semiconductor industry recovery, with increasing electronics and integrated circuits sales.

Malaysia’s semiconductor sector, he said, is poised for significant growth in the second half of 2024, bolstered by a World Semiconductor Trade Statistics prediction of a 13.1% market rebound. – Bernama