Malaysia's economy is projected to grow by 4.9 percent in 2024, an increase from the previous year's 3.7 percent, according to recent findings. This growth forecast is revised upwards by 0.6 percentage points due to strong performance in consumption, investment, and trade activities during the first half of 2024.
Despite this positive outlook, Malaysia faces risks from external factors and concerns over domestic household consumption strength. Labor market indicators show improvement with a steady unemployment rate at 3.3 percent in the second quarter of 2024, akin to pre-pandemic levels. However, skill-related underemployment remains a challenge that requires strategic interventions like aligning education with industry needs and supporting lifelong skill development.
The Malaysian ringgit has appreciated by 5.3% against the US dollar year-to-date, recovering from its depreciation in 2023. The country also experienced higher net foreign direct investment inflows in the second quarter of 2024 compared to last year, particularly into the services sector.
A comprehensive fiscal strategy is necessary for enhancing government spending efficiency and increasing revenue without negatively impacting low-income groups. Effective policy communication is crucial for gaining public support for fiscal reforms.
In agriculture, Malaysia has made progress in modernizing its agrofood system but must continue efforts to transition into a high-income nation. The sector requires increased productivity and resilience to support economic growth and ensure food security amid rising demand and climate change impacts.
Digital agriculture technologies (DAT) offer transformative potential for Malaysia's agrofood sector by improving productivity, efficiency, and sustainability. To realize these benefits, strategies must address digital divides, improve scalability and accessibility, safeguard data privacy and security, enhance public-private collaboration, and boost digital literacy training.
Specific actions tailored to rural areas are identified under three pillars: investing in public goods for digital technology implementation; fostering innovation ecosystems for DAT development; and creating enabling environments through clear data governance strategies.
"Investing in public goods that provide sufficient resources for successfully implementing digital technologies," states one action point aimed at improving access to agricultural technology information.
Another emphasizes "investing in the innovation ecosystem to create an environment that fosters innovation," aiming for better job opportunities through increased digital solutions supply.
Lastly, "creating an enabling environment by formulating clear and actionable strategies" focuses on enhancing equity within agricultural systems for higher farming efficiency.