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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