Driving forces of Malaysia’s economy

Free Malaysia Today

Explore the engines propelling Malaysia's economic growth, from palm oil to manufacturing, services, and oil & gas. Learn how these sectors intertwine to forge a path of prosperity for the nation.   Read More: https://www.freemalaysiatoday.com/category/nation/2024/07/11/what-keeps-the-malaysian-economy-ticking/   Laporan Lanjut: https://www.freemalaysiatoday.com/category/bahasa/tempatan/2024/07/11/sektor-penggerak-ekonomi-malaysia/   Free Malaysia Today is an independent, bi-lingual news portal with a focus on Malaysian current affairs.    Subscribe to our channel - http://bit.ly/2Qo08ry   ------------------------------------------------------------------------------------------------------------------------------------------------------  Check us out at https://www.freemalaysiatoday.com  Follow FMT on Facebook: https://bit.ly/49JJoo5  Follow FMT on Dailymotion: https://bit.ly/2WGITHM  Follow FMT on X: https://bit.ly/48zARSW  Follow FMT on Instagram: https://bit.ly/48Cq76h  Follow FMT on TikTok : https://bit.ly/3uKuQFp  Follow FMT Berita on TikTok: https://bit.ly/48vpnQG  Follow FMT Telegram - https://bit.ly/42VyzMX  Follow FMT LinkedIn - https://bit.ly/42YytEb  Follow FMT Lifestyle on Instagram: https://bit.ly/42WrsUj  Follow FMT on WhatsApp: https://bit.ly/49GMbxW  ------------------------------------------------------------------------------------------------------------------------------------------------------  Download FMT News App:  Google Play – http://bit.ly/2YSuV46  App Store – https://apple.co/2HNH7gZ  Huawei AppGallery - https://bit.ly/2D2OpNP   #FMTBusiness #Malaysia #Economy #GDP

Transcript

00:00Have you ever wondered what drives the Malaysian economy?

00:04How do we generate our revenue?

00:23Malaysia's economy has witnessed a surge.

00:28What sparked this growth?

00:30An increase in household spending,

00:32higher employment rates,

00:34better wages,

00:35and a resurgence in exports.

00:39But what lies ahead?

00:41Can Malaysia maintain its momentum?

00:45Experts see a promising outlook,

00:47projecting a growth rate between 4.5% and 5.5%.

00:53Growth is expected to ride on the back of four key sectors

00:57– palm oil, manufacturing, services, as well as oil and gas.

01:05The palm oil sector contributes RM40 billion annually to Malaysia's GDP.

01:11It anchors the country's agricultural output and global trade.

01:15Malaysia is the world's second-largest palm oil producer.

01:22The industry continues to be an important part of the Malaysian economy,

01:27contributing approximately 3% of our GDP growth last year.

01:36The manufacturing sector is another significant part of the economy,

01:41contributing RM1.2 trillion to the GDP.

01:45This sector includes chemicals, automotive, and electrical and electronics.

01:56Malaysia's automotive industry contributes RM40 billion to the GDP.

02:05The chemicals sub-sector is projected to add RM40 billion to the GDP by the end of the decade

02:12through better integration and greater global competitiveness, according to Tunku Zafrul Aziz.

02:21Furthermore, the E&E industry is expected to contribute RM120 billion to the GDP

02:28and RM495 billion in export earnings.

02:33The manufacturing sector is expected to grow at a stronger pace.

02:37This will be driven by expansion in the E&E cluster amid the global tech cycle rebound,

02:44and improvement in regional economies will also benefit the non-E&E exports.

02:55Tourism, finance and ICT contribute nearly 55% of GDP growth yearly.

03:02The services sector, particularly consumer-related sub-sectors,

03:06will benefit from tourism activities and the favourable labour market conditions.

03:13In 2023, tourism generated RM75 billion.

03:18By 2026, during VisitMalaysia year, tourism revenue is expected to reach RM147.1 billion

03:27from 35.6 million tourists, according to Deputy Tourism Minister Khairul Fridaus Appakan.

03:37A five-year Bank Negara Malaysia blueprint on national development

03:41will foster market dynamism and financial stability.

03:45Meanwhile, the ICT sub-sector, valued at RM121.72 billion,

03:52signifies Malaysia's transition to a knowledge-based economy.

03:58The oil and gas industry is a significant contributor,

04:04generating approximately RM300 billion each year.

04:08Petronas leads Malaysia's oil and gas sector.

04:12Oil was first discovered in 1910 on Kanada Hill Miri by Marcus Samuel and Company,

04:18later known as Shell, marking Malaysia's entry into oil exploration.

04:24Over time, major oil companies like ExxonMobil, Hess Corporation,

04:30PTT Exploration and Production and Enquest

04:34have invested in Malaysia's upstream sector alongside Petronas.

04:39These collaborations bolster Malaysia's global presence in the oil and gas industry,

04:45fostering advancement and innovation.

04:48These are the sectors that employ many Malaysians,

04:51creating business opportunities all along their supply chains.

04:57This is how they create wealth for the people and the nation.

05:01As one people, all Malaysians play a role in its growth and share in its benefits.

05:08Hannah Kam, FMT Business.

05:18www.fmt.co.uk

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