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This article appeared in the June 2023 issue of Forbes Asia. Subscribe to Forbes Asia
This article is part of Forbes magazine’s coverage of Malaysia’s richest people in 2023.See full list here.
Malaysia’s growth is likely to slow this year after achieving the fastest pace of post-coronavirus recovery in more than two decades in 2022. Malaysia’s GDP is expected to halve to 4% in 2023 as weaker global demand hurts its exports.
Rising prices continue to weigh on household budgets, and inflation is expected to slow to 3% from 3.4% last year, a concern for the Malaysian government. In February, it announced tax cuts for middle-income earners. Prime Minister Anwar Ibrahim is also targeting a budget deficit of 5.6% of gross domestic product (GDP) last year. Plans to boost income include a tax on luxury goods.
As global companies seek to diversify away from investing in China, another focus is on attracting foreign investors. According to the Milken Institute, Malaysia is well positioned. Thanks to measures to expand its trade-friendly policies, it ranked number one among emerging Southeast Asian countries as the most likely to attract foreign investment.
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