Digital Investments, AI Continue To Support Malaysia's Economic Growth - Amir Hamzah

GEORGE TOWN, May 18 (Bernama) - Malaysia’s economic growth prospects remain positive, supported by inflows of foreign and domestic investments and sustained demand in the artificial intelligence (AI), data centre, and semiconductor sectors.

Finance Minister II Amir Hamzah Azizan said Malaysia’s gross domestic product (GDP) for the first quarter of this year expanded by 5.4 per cent, which is higher than the earlier forecast of 5.3 per cent. This indicates that the country’s economic momentum remains strong.

“We can see that the entry of foreign direct investment (FDI) has started contributing to the GDP. Domestic direct investments (DDI) also continue to flow in significantly, and public spending remains strong.

“These are unique characteristics because the government, under the MADANI Economy framework, is working hard to ensure that the engines driving the economy continue to function smoothly,” he told reporters after visiting the Intel facility in Bayan Lepas here today.

Earlier, he inspected the alignment of the Mutiara Line light rail transit (LRT) project, visited the Silicon Island development site, and ended his working visit at Intel with a company briefing on its developments and expansion projects in Penang.

Amir Hamzah said the government is also focusing on efforts to encourage domestic investments, particularly from government-linked investment companies (GLICs) and government-linked companies (GLCs), to seize the increasingly broad growth opportunities.

Commenting further, he said initiatives under the MADANI Economy also emphasised increasing the people’s income, including the civil service, implementing the minimum wage, and transitioning GLICs and GLCs from the minimum wage concept to living wages.

“If we look at the AI and data centre drivers, they are still strong, and we have a strong ecosystem in Malaysia, especially in the northern region,” he said.

He said Malaysia, as a trading nation, continues to attract investors’ interest, driven by its strong industrial ecosystem and continuing trends in digitalisation, data centres, and AI.

He said the government will continue to build an investor-friendly ecosystem to establish and grow, thereby transforming Malaysia into a developed nation.

Amir Hamzah said infrastructure developments such as expanding Juru interchange, upgrading Penang International Airport, and implementing the Mutiara Line LRT will facilitate the movement of workers and investors, while also supporting industrial activities in the northern region.

He said the government is also focusing on stabilising utilities, including electricity and water supply, with a new electricity transmission line by Tenaga Nasional Bhd near the completed Penang Bridge, while the Kerian water supply project in Perak is expected to benefit the northern region, including Perak and Penang.

On Intel’s expansion, he said the project includes advanced packaging components, further strengthening Malaysia’s position as a semiconductor hub.