IMF hails Malaysia’s economic reforms

FMT:

 

IMF hails Malaysia’s

economic reforms

Bernama

-15 Dec 2024, 08:55 PM

However, the International Monetary Fund calls for reforms to be hastened to create a more inclusive and resilient economy.

11

Shares

Total Views: 3,810

The International Monetary Fund said the government’s structural reform plans under the Madani economic framework are appropriately focused.

KUALA LUMPUR: 

Malaysia’s economic reform moves have been commended by the International Monetary Fund, which highlighted the introduction of the Public Finance and Fiscal Responsibility Act and the successful implementation of electricity and diesel subsidy reforms.

The IMF also emphasised the need to speed up carrying out reforms in order to create a more inclusive and resilient economy in the face of global uncertainties.

“Malaysia’s strong economic performance provides the country with a window of opportunity to advance its ambitious reform agenda. The government’s structural reform plans under the Madani economic framework are appropriately focused,” the IMF said in a statement.

IMF said its views were based on its team’s preliminary findings after a visit to Malaysia recently.

It said the Fiscal Responsibility Act marked a significant milestone for fiscal management and governance.

As for economic growth, the IMF noted that Malaysia’s economic performance has significantly improved in 2024, supported by strong domestic and external demand.

However, growth is projected to moderate from 5% in 2024 to 4.7% in 2025, reflecting a moderation in investment growth and the rising global uncertainty.

“Risks to growth are tilted to the downside, mainly due to the uncertain global outlook, including external risks from deeper geoeconomic fragmentation, while upside risks could arise from the faster-than-envisaged implementation of large investment projects in Malaysia,” it added.