Its minister Tengku Zafrul Aziz acknowledged that the 5% target was lower than the 9% year-on-year growth recorded last year, but maintained “it is still a growth”.

“Because of certain challenges, we see a potential growth of around 4.5% to 5.5%,” he said in presenting Miti’s 2024 performance report card.

He added that the 5% goal was subject to potential challenges in the year ahead such as tariffs, trade wars, or other new measures imposed by foreign countries.

“There will be an impact, and we cannot deny that fact.

“Objectively speaking, when you make forecasts, you need to be more agile in allowing the forecast to be adjusted. The World Bank and International Monetary Fund always revise their GDP forecasts because of geopolitics and geo-economics,” he said.

Tengku Zafrul also said his ministry is aiming to finalise negotiations on a Malaysia-EU free trade agreement (Meufta) by next year.

“I am pressuring my colleagues to move faster on the Meufta, and we have already had a few meetings regarding this. I will be updating the EU later,” he said, adding that negotiations would extend to the digital and green economy.

He added that the EU’s sustainability concerns surrounding palm oil had been resolved.

“I am happy to report that palm oil is no longer an issue in the Meufta. We have addressed their concerns and our standards comply with the EU’s standards,” he said.

The minister also said the rise in exports in sectors like electrical and electronics (E&E), chemicals and chemical products, machinery, equipment and parts, as well as medical devices aligned with the government’s targets in the New Industrial Master Plan 2030.

The E&E sector saw a 4.47% increase in exports last year compared with 2023, followed by medical devices (31.78%), machinery (20.48%), and chemicals and chemical products (2.95%).