Kuala lumpur: Prime Minister Datuk Seri Anwar Ibrahim described Malaysia's second-quarter economic growth of six per cent as an outstanding achievement that strengthens investors' confidence in the country. However, he emphasised that the growth should not be misconstrued as a direct indication of higher government revenue.

According to BERNAMA News Agency, Anwar, who is also Finance Minister, said the assumption that stronger economic growth would automatically enable the government to generate higher revenue and increase spending was economically inaccurate. He stated, "Many people asked: if we have recorded six per cent growth in gross domestic product (GDP), shouldn't that mean higher revenue and allow us to spend more? But that is not how it works. That would be poor economics."

The Prime Minister elaborated that the higher growth in areas such as artificial intelligence (AI), data centres, and digital technology does not directly translate into government revenue. Instead, it contributes in terms of development, employment opportunities, enhanced capabilities, and technology. Anwar made these remarks while officiating the National Innovation and Commercialisation Expo (NICE) 2026 at the Kuala Lumpur Convention Centre (KLCC) today.

He noted that investments in sectors like digital and technology provide indirect benefits that would take some time to be reflected in government revenue. These differ from investments in sectors such as manufacturing and agriculture, which generate more direct returns to the country.