SHAH ALAM, Nov 21 — The state’s economy is expected to grow strongly in 2025, with projections indicating a potential increase in its gross domestic product (GDP) of up to 6.3 per cent, said Menteri Besar Dato’ Seri Amirudin Shari.
The projection is based on input-output studies conducted by Universiti Putra Malaysia and that the state’s growth performance has been robust in recent years.
In July, the state’s investment arm Invest Selangor Bhd revealed that Selangor saw a record high GDP of RM432.1 billion for 2024, representing a six per cent increase from the previous year.
“We were fortunate that in 2022, Selangor recorded a growth surge of 11 per cent. This has allowed us to maintain strong growth from 2020 to 2023,” he said in his winding-up speech during the State Legislative Assembly session today.
Amirudin added that Selangor’s expansion has already exceeded the initial First Selangor Plan (RS-1) target of 6.5 per cent, reaching 7.3 per cent.
“Our contribution (to the national GDP) was 26.2 per cent in 2024, and we are awaiting the figures for 2025,” he said.
Amirudin noted that the state expenditure not only covers management costs but also includes investment and development elements, which have helped sustain economic growth.
However, he cautioned that the final growth figures for 2025 could still be affected by external factors, such as conflicts in the Middle East and other regions.
Inflation trends ease
Earlier in his speech, the Menteri Besar also said that the state’s inflation rate has shown signs of stabilisation in recent months.
Citing data from the Malaysian Statistics Department (DOSM), Amirudin said that Selangor recorded 1.5 per cent inflation in August, increasing slightly to 1.8 per cent in September before easing to 1.6 per cent in October.
Historically, Selangor’s inflation has almost always been higher than the national average, except in 2012 when it dipped marginally below.
“Our inflation has even spiked to 4.2 per cent before,” he said, referring to 2017 and 2022 as examples.
Selangor’s consistent measures, alongside Federal initiatives like price control programmes and the Jualan Ehsan Rahmah initiative, have helped bring inflation down.
“Throughout 2024, our inflation has fallen to around 2.4 or 2.1 per cent, and in 2025 it has never gone above 2 per cent,” he said, noting that inflation must be viewed in context.
“Inflation is not always negative because it reflects demand and supply. As long as it stays below 3 per cent, it is still considered healthy,” Amirudin said.
