As the unveiling of the 2025 budget approaches, the government is expected to maintain its focus on strategic investments that will drive transformative economic growth, positioning Malaysia for a more prosperous and resilient future. Benedict Weerasena, Research Director of Bait Al Amanah was recently interviewed by Free Malaysia Today on the Budget’s Multiplier Effect on the Economy.
Weerasena explained that “Government spending through the Budget has a notable multiplier effect on the economy. Its impact on growth becomes significantly stronger when new expenditure measures are supported by robust revenue generation, as the positive relationship between revenue shocks and economic expansion amplifies the overall effect.”
He added that “the government in Budget 2025 should focus additional funds more on the digital economy, in which investment in digital infrastructure and technologies such as artificial intelligence, big data, and fintech will help Malaysia stay competitive in a rapidly evolving global landscape. Second, building on the momentum from the National Energy Transition Roadmap, further investment in green technologies, renewable energy, bioenergy and green mobility can position Malaysia as a leader in green economy in the region. Third, increasing funding for research and development, can spark innovation and attract high-value investments.”
For the full article by Lee Min Keong, refer to Free Malaysia Today
For the video coverage of the interview, refer to this https://www.youtube.com/watch?v=uP6ZNSDPTgw
Photo Credit: NOW Group
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