KUALA LUMPUR: Malaysia is on track to achieve the status of a developed and high-income country, said Deputy Prime Minister Datuk Seri Dr Ahmad Zahid Hamidi.

His remarks followed the World Bank's revision of Malaysia's economic growth forecast for this year, reflecting stronger-than-expected household consumption, improved investment and trade performance.

"After nearly two years since the establishment of the Unity Government, we have witnessed substantial progress, particularly in economic growth.

"This success is driven by effective government policies, strengthened investment and trade, and the political stability we have fostered," he said.

He noted the encouraging performance of the ringgit, which appreciated by 2.5% against the US dollar in July 2024, significantly outperforming the Singapore dollar, Thai baht and Indonesian rupiah, which recorded average increases of only 1%.

Ahmad Zahid made these comments during the Rural and Regional Development Ministry's monthly assembly here on Wednesday.

He highlighted that approved investments surged to RM160 billion in the first half of this year, marking an 18% increase compared to the same period in 2023.

Additionally, trade value rose by 18.6% in August, the highest growth in 22 months.

The inflation rate decreased to 1.9%, and the unemployment rate stabilised at 3.3%, with 190,000 job opportunities created in the second quarter of this year.

"There are still many achievements [that] we can be proud of, as Malaysians.

"Bursa Malaysia has seen gains, trading values have soared, Bank Negara Malaysia's reserves have increased, and diesel smuggling has been curbed, among other successes," he added.

The World Bank Group announced on Tuesday (Oct 8) that it had raised Malaysia's economic growth forecast to 4.9% for 2024, up from the 4.3% projected last April.

Its chief economist for Malaysia, Dr Apurva Sanghi, attributed the upward revision to both domestic and external factors, noting that the global economy performed better than expected in the past six months.