By Joshua Woo Sze Zeng (State Assemblyman for Pulau Tikus, Penang)
14 July 2025
During a recent visit at my constituency market, several traders spoke to me that the prevailing sentiment now suggests a struggling economy and increasing cost of living.
Many people are feeling the pressure caused by this sentiment. It is something I take seriously, and I do not want to dismiss those struggles. At the same time, I also want to share some signs that our economy is actually doing better than we realise.
Just last week, I spoke to the CEO of a company that manages a network of shopping malls. He said that footfall across their properties has increased noticeably.
This trend is not isolated. IOI City Mall continues to report strong occupancy and steady visitor traffic. Sunway Malls recorded a 5% growth in 2024 and aims to maintain that pace this year. Other major players like Pavilion, The Gardens (IGB), and KL Sentral are even expanding their operations.
(Sources: https://themalaysianreserve.com/2025/05/29/ioi-properties-stays-resilient-with-strong-investment-and-hospitality-growth, https://thesun.my/business-news/sunway-AO13841760, https://www.thestar.com.my/business/business-news/2025/07/11/expansion-by-reits-viewed-as-a-positive-factor)
When shopping malls are doing well, it usually means businesses are seeing sales, people are spending, and investors are confident.
This growth is also showing up in the REITs (real estate investment trusts) sector, which depends on the performance of retail spaces.
After I shared these facts and figures with the traders, they began to reconsider their views.
Besides the REITs sector, I believe there are five economic signs that point to a more optimistic present scenario.
1. Lower OPR and Low Inflation
First, the Madani government has pre-emptively reduced the Overnight Policy Rate (OPR) to 2.75%. What does this mean for us directly?
Simply put, our monthly repayments for vehicle loans, housing loans, personal loans, and even company loans are now cheaper. This translates into more disposable cash in our pocket and in our company’s coffers each month.
Complementing this, we have also seen inflation in May 2025 drop to a remarkable 1.2%, the lowest in four years.
With more cash available and stable, low inflation, the market’s spending power has undeniably strengthened. In view of this, the MIDF Research highlights households as the biggest winners now. Consequently, businesses across the retail, automotive, hospitality, tourism, and property development sectors are poised for significant gains.
(Sources: https://www.midf.com.my/sites/corporate/files/2025-07/thematic-beneficiary_of_surprise_opr_cut-midf-100725.pdf, https://www.thestar.com.my/business/business-news/2025/07/11/opr-cut-beneficiaries)
2. Highest Employment in a Decade
Secondly, we have the lowest unemployment rate in 10 years, reaching just 3% in April 2025.
This is not a sectoral anomaly. According to the Department of Statistics Malaysia, more people are employed across all sectors, including manufacturing, construction, agriculture, mining, and services.
This consistent trend of high employment directly contributes to greater financial security for households. When more families have stable incomes, the social and economic fabric of our nation is undoubtedly strengthened.
(Source: https://www.thestar.com.my/news/nation/2025/06/12/unemployment-rate-at-10-year-low)
3. Malaysia Becomes Southeast Asia’s Top IPO Hub
Thirdly, Malaysia has emerged as Southeast Asia’s top IPO market in the first half of 2025.
According to Deloitte’s latest report, we successfully raised a substantial US$ 940 million from Initial Public Offerings (IPOs).
This represents the highest amount of funds raised in the region, with the highest market capitalization and number of listings.
This momentum is a clear indicator that business confidence is high and our economy is thriving, attracting significant investment.
4. Soaring Competitiveness
Fourth, Malaysia has leapt an impressive 11 spots in the World Competitiveness Ranking, now standing at 23rd. This is Malaysia’s best performance in the past five years.
This remarkable improvement is a testament to ongoing reforms in bureaucracy and governance, which are effectively stimulating industrial growth and attracting further investment.
Currently ranked 4th globally in economic performance, Malaysia is truly positioning itself as a premier investment hub.
5. Historic Investment Inflows
Finally, we achieved a historic milestone with RM378.5 billion in approved investments for 2024, marking a substantial 14.9% increase from the previous year. These investments are spread across 6,700 projects, collectively projected to create over 207,000 new jobs.
It is heartening to note that companies from the USA, Germany, China, Singapore, and Hong Kong are among the largest investors, reflecting global confidence in Malaysia’s economic prospects.
What Does This All Mean for Us?
Consider the collective implications of these developments: the OPR rate cut, a decade-low unemployment rate, our position as the top IPO market in the region, a significant jump in global competitiveness, and record-breaking investment inflows. What does this signify?
It means there is more cash circulating in our economy, vehicles and houses are becoming more affordable, market confidence is robust, and global investors are increasingly looking towards Malaysia.
These are not merely abstract economic indicators. They manifest in our daily lives.
It is why we see people patiently queuing up at expensive restaurants, why travel fairs are flooded with individuals booking overseas trips, and why more people are opting for the convenience of FoodPanda and GrabFood, even with delivery fees, rather than cooking at home.
These common sights are indicators of a nation with strengthening purchasing power and growing confidence.
Under the leadership of Prime Minister Anwar Ibrahim, Malaysia is not merely recovering economically. We are being propelled towards growth.
While challenges certainly remain, such as the complexities of the US-China trade war and rising tariffs, our nation is undeniably moving forward. The signs of growth are everywhere. Can you see them?