UPWARD REVISION: Malaysia's central bank expects growth at five to six per cent this year
BANK Negara Malaysia (BNM) yesterday projected a rosier picture for the Malaysian economy this year and revised upwards its growth outlook to between five and six per cent.
It came in above the 4.5-5.5 per cent projection by the Ministry of Finance at the release of the fiscal budget in September last year.
BNM governor Tan Sri Dr Zeti Akhtar Aziz said the economy, which grew by 5.6 per cent in 2012, remains on a steady growth trajectory and domestic demand will continue to become the main driver of growth.
Consumption demand will return to its steady and sustainable growth path of six to seven per cent, she said, despite exceptional growth in 2012.
The external demand will offset the moderation in consumption projected in 2013 as trade is expected to improve on the back of better intra-regional trade, which will also show an improvement in net exports this year.
On the supply side, all economic sectors are expected to expand this year, with the services and manufacturing sectors seen as the key drivers, growing by 5.5 per cent and 4.9 per cent, respectively.
BNM's views were shared by market analysts.
CIMB Investment Bank director of economic research Lee Heng Guie felt that while consumption and investment, the domestic catalysts, will continue to anchor growth, the cyclical upturn in exports should improve economic prospects.
MIDF Research economist Anthony Dass expects the domestic economy to remain resilient this year as local demand, mainly from private expenditure, continues to spearhead growth.
Fiscal policy consolidation and addressing the public debt limit will be the centre of attention this year, along with continued efforts to sustain growth momentum and facilitate the long-term transformation of the economy.
Asked to comment on the government debt and the systemic risks it poses to the economy, Zeti said:
"The election is taking place when the economy is doing well ... unlike in Europe where it is faced with issues like unemployment, financial system, (and) credit flow (that has) not resumed."
She said the fiscal consolidation process by the government has already commenced, pointing out that the fiscal deficit has reduced to below five per cent.
"As long as the direction is there, the deficit will continue to be reduced and there will be a reduction in government fiscal indebtedness. Government revenues have improved significantly."
On the narrowing of the current account and balance of payments, she said there was less concern because the current account balance is still expected to remain in a surplus of about 4.4 percent of gross national income.
"The continued investment activity, especially in high value-added and productive sectors, is expected to improve Malaysia's competitiveness, sustain demand for exports, and improve our capacity in terms of imports for investment activity."
Zeti said the Financial Services Act 2013, which will give BNM greater powers, will be gazetted and implemented in the first half of 2013.
Read more: Rosier picture for Malaysian economy http://www.btimes.com.my/Current_News/BTIMES/articles/20130321003958/Article/index_html#ixzz2O9Wpjzmv
I am very glad the country is doing fine. It is time to go to the polls, right now.ReplyDelete
Of-course our opposition would have a mind of their own, in the opposite direction. That's what opposition do in Malaysia, oppose everything.
Here's some more according to Bloomberg,ReplyDelete
Malaysian Gross National Income (GNI) could rise to $15,000 per capita in 2018, earlier than Mahathir's target of 2020. A nation is considered high income when GNI per capita meets or exceeds $12,476, according to the World Bank.
Government revenue was the highest on record last year at an estimated 207 billion ringgit, enabling the government to afford socio-economic programs and like giving money to the poor.
Infineon Technologies AG (IFX), Europe’s second-largest maker of semiconductors, said in May it will spend 4 billion ringgit over 10 years to expand its wafer-fabrication facilities in Malaysia’s north. Germany’s Evonik Industries AG plans to start a specialty chemicals manufacturing venture with Petroliam Nasional Bhd. within a $20 billion refining and petrochemicals complex in southern Johor state (Once it is in full operation, the place will be like a new Kerteh. thousands of jobs will be available to young Johoreans).
Malaysia’s total investment grew 19.9 percent in 2012 compared with 6.5 percent in 2011, accounting for 26.7 percent of GDP.
Private investment climbed 22 percent to 139.5 billion ringgit ($45 billion) in 2012, driven by spending on manufacturing, services and mining.
The budget deficit narrowed from 6.6 percent of GDP in 2009 to 4.5 percent last year.
Thank you very much.Delete
Malaysia is growing.......nearer to bankruptcy !!ReplyDelete
Annie, you know how much hutang negara is now ??
Please read the comment by Anon 15:21Delete
You don't need to be an accountant or be proficient in Excel to know PR's budget is at least 50% more than the one tabled by BN.Delete
How much will it cost to have enough infrastructure & HR to cope with an annual enrolment of at least 400k into pur public universities?
Higher limit for the top band of income earners equal lower collection of revenue from tax right? As for higher fuel subsidies, lower profit for Petronas right?
Let me pre-empt you at this point. Even with leakage plugged, the budget value remains the same savvy? If you have a budget of RM100 of which RM20 is lost to leakage, you'd have RM80 to spend. If you plug that leakage, you will have RM100, the original budget, not RM120 or RM150. Plugging leakages does not equate to more money than originally budgeted you know?
So comes the biggie elephant in the room. How do we finance all this? Increase our external debts? Tap into the Treasury's offshore reserves? Or put our fingers into Petronas', Khazanah's, PNB's or EPF's coffers through internal financing?
And let's not even begin about the guaranteed inflation due to the minimum wage. RM2 billion facilitation fund will prop up the market for how long artificially pray tell?
What is the current account deficit?ReplyDelete
Please read the comment by Anon 15:21Delete
hutang untuk bina infra. mrt, lrt, double tracking, roads etc. jangka pangjang akan untung kembali. how about singapore= over 80%, us =over 100%. bangrap tak? because its sgapore right?ReplyDelete
Please stick to your day job.
They can only ask rhetorical questions repeating the deliberately skewed pronouncements of their political masters. They already know the answers but choose to confuse. That's all they can do. None can write like what Anon 15:21 has done.ReplyDelete
What a silly way to demonstrate their stupidity!
You said it very well indeed.Delete
That's what our opposition is good at. Their CT wrote nonsense in Bigcat. YB Wee Choo Keong is right, our opposition is best in sowing hatred among Malaysian. No wonder many Towering individuals, like TS Lee Lam Thye, Tunku Aziz, YB Wee and many more, quits DAP.Delete
Please read below URL, what YB Wee said about them.
Few years ago UMNO in Melaka declared they have reached developed state with the income. Why DUMNOs here and in main stream don't scream about 2020s using Bomberang Report.ReplyDelete
Real Dumno - So those guys mentioned has been sowing hatred when they are members of the party. Now are they building muhibbah? Or sow more hatred? One finger at others but 4 fingers to themselves.ReplyDelete
RD, When you say it is your facts and people disprove them, you say it is nonsense because you yourself speak without facts unable to prove they are wrong.ReplyDelete
This Wee said DAP leaders misused the luxury car APs and accused them. When checked out, the DAP leaders did not even applied for APs. He is good in durians.