The country’s economy is growing, investors are increasingly trusting Malaysia – BNM Governor

KUALA LUMPUR: The long-term prospects of the national economy are bright because investment is increasing strongly again and it can be described by the new term ‘investment upcycle’.

The Governor of Bank Negara Malaysia (BNM), Datuk Seri Abdul Rasheed Abdul Ghaffour said, it is based on clear prospects for private and public investment which is seen as guaranteed, especially looking at changes in the electricity and electronics sector, infrastructure projects and renewable energy.

“These quality projects can contribute to higher productivity, greater economic planning and ultimately generate high-income jobs for the people in our country.

“This drives the country’s economy to continue growing. Looking at the economic growth of 5.9 percent in the second quarter of this year, it is supported by resilient domestic demand and recovery in external demand.

“What is important is that our long-term outlook is bright as investment picks up again strongly in what has been described as a new ‘investment upcycle’,” he said.

He said this while delivering the keynote speech at the rebranding ceremony of the Asian Insurance Institute (Aii) which was formerly known as the Malaysian Insurance Institute.

Aii’s commitment to address the complex and volatile needs of the insurance industry in a dynamic global structure was one of the key factors behind the rebranding.

Meanwhile, he also informed that new business premiums in the life insurance and general insurance industry recorded double-digit growth to over RM20 billion in the first half of this year.

He said that the family takaful and general takaful industry also recorded positive developments with contributions of over RM7 billion for the period under review.

“Malaysia’s insurance and takaful sector will remain an important point for the country. There is no doubt, the experience of the industry in recent years in driving innovation in the field of medical protection and motor protection is encouraging.

“However, although we have recorded great progress towards ensuring the sustainability of protection and fostering innovation, there are still many roles that need to be played by us,” he said.

Malaysia recorded an approved investment value of RM83.7 billion across various sectors for the period from January to March 2024, representing a 13 percent increase from RM74.1 billion for the same period last year.

Rasheed further explained that the approved investment amounting to almost RM84 billion for the first quarter of 2024 reflects investors’ trust in Malaysia.

The total investment approved for the first quarter of 2024 includes 1,257 projects that are expected to generate 29,027 new job opportunities for people in the country.

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