Budget’s multiplier effect can transform economy, say economists

Free Malaysia Today

The government leverages the multiplier effect with its spending on key sectors to benefit the rakyat.  Read More:  https://www.freemalaysiatoday.com/category/nation/2024/10/15/budgets-multiplier-effect-can-transform-economy-say-economists/  Laporan Lanjut:  https://www.freemalaysiatoday.com/category/bahasa/tempatan/2024/10/15/kesan-pengganda-belanjawan-boleh-transformasi-ekonomi-kata-pakar/  Free Malaysia Today is an independent, bi-lingual news portal with a focus on Malaysian current affairs.    Subscribe to our channel - http://bit.ly/2Qo08ry   ------------------------------------------------------------------------------------------------------------------------------------------------------ Check us out at https://www.freemalaysiatoday.com Follow FMT on Facebook: https://bit.ly/49JJoo5 Follow FMT on Dailymotion: https://bit.ly/2WGITHM Follow FMT on X: https://bit.ly/48zARSW  Follow FMT on Instagram: https://bit.ly/48Cq76h Follow FMT on TikTok : https://bit.ly/3uKuQFp Follow FMT Berita on TikTok: https://bit.ly/48vpnQG  Follow FMT Telegram - https://bit.ly/42VyzMX Follow FMT LinkedIn - https://bit.ly/42YytEb Follow FMT Lifestyle on Instagram: https://bit.ly/42WrsUj Follow FMT on WhatsApp: https://bit.ly/49GMbxW  ------------------------------------------------------------------------------------------------------------------------------------------------------ Download FMT News App: Google Play – http://bit.ly/2YSuV46 App Store – https://apple.co/2HNH7gZ Huawei AppGallery - https://bit.ly/2D2OpNP  #FMTNews #AnwarIbrahim #Budget2025 #Economy

Transcript

00:00With Budget 2025 approaching, economists expect the government to invest in strategic sectors

00:07to spark a multiplier effect in hopes of transforming the economy.

00:12The multiplier effect refers to when government spending leads to a greater increase in the

00:17nation's gross domestic product than the amount initially spent.

00:21Bayt al-Amanah Research Director Benedict Wirasina said that under Budget 2024,

00:27the government targeted key sectors such as infrastructure as well as small and medium

00:32enterprises, which would generate robust financial returns.

00:36Last year, RM27 billion was allocated for infrastructure projects,

00:41while another RM20 billion was used to fund loan guarantees for SMEs.

00:47Wirasina said the government's strong support for SMEs would generate employment and innovation,

00:53resulting in a positive feedback loop that stimulates greater economic growth.

00:58Economist Niaz Asadullah also said Budget 2024 laid a strong foundation for the multiplier

01:05effect to take place in the renewable energy sector.

01:08He cited the National Energy Transition Roadmap, noting that its RM60.7 billion investment

01:14commitment would transform Malaysia into a renewable energy hub while creating 80,000 jobs.

01:22Looking ahead, Wirasina hopes that the government will allocate additional funds in the 2025 budget

01:28to accelerate the development of digital infrastructure and technology.

01:33Natasha Bust, FMT News.

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