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Malaysia Wealth Creation 2023: Dial Back

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This story appears in the June 2023 issue of Forbes Asia. Subscribe to Forbes Asia

This story is part of Forbes’ coverage of Malaysia’s Richest 2023. See the full list here.

Malaysia’s growth is likely to moderate this year after achieving its fastest pace in over two decades on a post-Covid rebound in 2022. The country’s GDP is seen halving to 4% in 2023, as cooling global demand hits Malaysian exports.

Higher costs continue to bite into household budgets—though inflation is expected to taper to 3% from last year’s 3.4%—a cause for concern for Malaysia’s government. In February it announced tax cuts for middle-income earners. Prime Minister Anwar Ibrahim is also targeting the nation’s budget deficit, which was projected at 5.6% of GDP last year. Plans to bring in more revenue include a tax on luxury goods.

Another focus is drawing foreign investors as global companies seek to diversify away from China investments. According to the Milken Institute, Malaysia is well positioned; it ranked first in emerging Southeast Asia as the country with the most potential to attract overseas investment, thanks to steps to expand trade-friendly policies.

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Source: Fox Business

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