A robust gross domestic product (GDP) growth of 5.9% in the second quarter of 2024 is a positive indicator that Malaysia is on track to achieve its GDP projection of around 4% to 5% for the year.

Minister of Investment, Trade and Industry, Tengku Datuk Seri Zafrul Abdul Aziz said in a post on X Monday that among factors contributing to the GDP growth in the second quarter was a significant increase in private investment, as investors are increasingly confident about the country’s economic prospects.

“Private investment increased by 9.2% in the first quarter of 2024 and rose by 12% in the second quarter, while the manufacturing sector grew by 1.9% in the first quarter and by 4. % in the second quarter.

“The New Industrial Master Plan (NIMP) 2030 is already starting to show results,” Zafrul said.

He highlighted that the surge in exports driven by global demand for Malaysian products, particularly in the electrical and electronics (E&E) sector, also contributed to the GDP growth in the second quarter of 2024.

“The second quarter of 2024 saw a 3.4% increase in net exports, and the World Semiconductor Trade Statistics has forecast a 16 % rise in semiconductor demand this year.

“The implementation of the National Semiconductor Strategy should ensure Malaysia remains a key player in the global semiconductor industry,” the minister said.

Zafrul also said that the Ministry of Investment, Trade and Industry (MITI) will continue to work on advancing the local industry, boosting trade and attracting quality investments to create more high – paying jobs for Malaysians.

• The Edge Markets