KUALA LUMPUR (Reuters) – Malaysia is aiming for economic growth of at least 5% annually until 2025, lower than the Southeast Asian nation’s previous target, Prime Minister Anwar Ibrahim said on Monday.
The lower forecast comes as Malaysia’s economy takes a hit from a global slowdown. Growth was the slowest in nearly two years in the second quarter as exports slumped.
Malaysia had earlier targeted growth of 4.5% to 5.5% annually between 2021 and 2025 as part of its five-year economic growth plan.
Tabling the midterm review of the plan in parliament, Anwar said Malaysia’s economic growth will be supported by a focus on accelerating the transition to high-value industries, and bigger investments.
He said Malaysia was targeting private investments of 300 billion ringgit ($64.17 billion) annually until 2025.
“The government aims to make Malaysia the preferred destination for investors by enhancing competitiveness,” Anwar said.
Ad: Save every day with Amazon Deals: Check out today's daily deals on Amazon.
Anwar also said the government will increase the budget allocation for the economic plan to 415 billion ringgit ($88.77 billion), compared to the 400 billion ringgit previously announced.
Last month, the central bank said Malaysia’s full-year economic expansion would be at the lower end of the 4% to 5% range it had forecast earlier.
($1 = 4.6750 ringgit)
(Reporting by Danial Azhar; Editing by A. Ananthalakshmi and Martin Petty)