KUALA LUMPUR, 24 MARCH 2025: Malaysia is set to see robust growth in investment activity in 2025, driven by the implementation of both new and ongoing projects, the central bank said.
Bank Negara Malaysia noted that in the private sector, investment intentions for 2025 remain strong.
This was evidenced by the high level of approved investments amounting to RM378.5 billion in 2024, reflecting a 14.9 per cent annual growth.
In its Economic and Monetary Review 2024, Bank Negara said the realisation of these investments in the coming year will be supported by sustained global demand, benefiting key industries such as electrical and electronics (E&E), information and communication technology (ICT) and data centers.
"The progress of these investments will also be accelerated by government initiatives to expedite approval processes and facilitate project implementation, enhanced by active engagements between authorities and investors
"In addition, Malaysia's well-established and conducive investment ecosystem will provide continued impetus, attracting new investors and promoting investment retention in the country," it said.
The central bank noted that catalytic initiatives under national master plans will provide additional support to investment activity.
It also highlighted notable examples, such as Petroliam Nasional Bhd's Kasawari carbon capture and storage project and Tenaga Nasional Bhd's hybrid hydro-floating solat photovoltaic project.
Bank Negara said the growth outlook for the Malaysian economy faces several downside risks, primarily due to significant external uncertainties.
These include the possibility of more restrictive trade policies and retaliatory measures, as well as the potential escalation of geopolitical conflicts.
"These factors could disrupt global trade, leading to an economic slowdown in Malaysia's key trading partners, and subsequently affecting the country's trade performance.
"Collectively, these uncertainties may also affect investment and spending decisions amid weaker sentiments," it added.
The central bank said further disruptions in commodity production could also impact the growth outlook.
"These factors, if realised, would place growth towards the lower end of the projected range.
"Notwithstanding, growth could be lifted by several positive factors to potentially exceed 5.0 per cent, within the upper bound of the projected range," it said.
