KUALA LUMPUR (Reuters) - Malaysia is aiming for economic growth of at least 5% annually until 2025, lower than the Southeast Asian nation's previous target, Prime Minister Anwar Ibrahim said on Monday.
The lower forecast comes as Malaysia's economy takes a hit from a global slowdown. Growth was the slowest in nearly two years in the second quarter as exports slumped.
Malaysia had earlier targeted growth of 4.5% to 5.5% annually between 2021 and 2025 as part of its five-year economic growth plan.
Tabling the midterm review of the plan in parliament, Anwar said Malaysia's economic growth will be supported by a focus on accelerating the transition to high-value industries, and bigger investments.
He said Malaysia was targeting private investments of 300 billion ringgit ($64.17 billion) annually until 2025.
"The government aims to make Malaysia the preferred destination for investors by enhancing competitiveness," Anwar said.
Anwar also said the government will increase the budget allocation for the economic plan to 415 billion ringgit ($88.77 billion), compared to the 400 billion ringgit previously announced.
Last month, the central bank said Malaysia's full-year economic expansion would be at the lower end of the 4% to 5% range it had forecast earlier.
($1 = 4.6750 ringgit)