CONTAINER ....A general view of a container yard at North Port in Port Klang.
By : YOW HONG CHIEH (TMI)
MALAYSIA’S economic growth will slow to 4.0 per cent this year on weaker external demand before accelerating to 5.0 per cent in 2013, the Asian Development Bank (ADB) has said.
It noted in a report published today that the gloomy global outlook will cloud the nation’s growth prospects given its close integration with the world economy.
ADB’s Asian Development Outlook 2012 said growth would again be anchored by domestic demand this year, with private consumption set to get a boost from the government’s decision to hike up public sector wages and give one-off cash handouts to low-middle- income earners.
Putrajaya’s plan to introduce a minimum wage this year was also expected to lift incomes for the low paid, again boosting domestic demand.
The labour market is expected to soften, particularly in trade-exposed industries, the report said, citing a steep decline in job vacancies in January this year from a year ago.
Private investment in export-oriented sectors like electrical and electronics will be subdued by weak global demand this year, although investment in industries which depend on domestic demand will likely remain “relatively buoyant”, it said.
“Growth in merchandise exports is expected to be subdued in 2012 owing to torpid global trade and softer prices for export commodities, including palm oil,” the report said.
“Similarly, imports will increase at a modest rate, in tandem with weakness in manufacturing industries and more moderate growth in private domestic demand.”
ADB also said services will likely continue to drive growth on the production side as the government relaxes restrictions on foreign investment in 17 services sub-sectors like accounting, education, legal, and medical services.
This will be aided by tax breaks given to encourage treasury management as well as Islamic and other financial services, it said.
The report added that the government’s fiscal policy this year was again targeted at stimulating domestic demand and that the federal deficit was expected to be broadly similar to that recorded for 2011 as a share of gross domestic product (GDP).
It forecast that inflation will recede to 2.4 per cent on slower domestic demand and lower prices for imported commodities in general.
Bank Negara Malaysia (BNM) said last month it expects the economy to slow to a pace of four to five per cent this year on sharply weaker exports amid a global slowdown.
The central bank said domestic demand will continue to support expansion but that slower growth in Malaysia’s major trade partners and the euro zone debt crisis threatened the outlook for 2012.
BNM’s forecast for 2012, following GDP growth of 5.1 per cent last year, is more pessimistic than the government’s target of five to six per cent needed to attain high-income nation status.
Malaysia’s economic freedom score is 66.4, making its economy the 53rd freest in the 2012 Index. Its score is 0.1 point higher than last year, reflecting a gain in business freedom partially offset by declining effectiveness in the control of government spending.
ReplyDeleteMalaysia is ranked 9th out of 41 countries in the Asia–Pacific region, and its overall score is above the world and regional averages.The Malaysian economy has shown a moderate degree of resilience in the face of a challenging global economic environment.
DeleteReform efforts have continued in many of the four pillars of economic freedom. The overall regulatory framework is now more efficient, and business procedures have been streamlined.
DeleteImplementation of policies intended to support open markets and encourage a vibrant private sector is enhancing investment flows and improving the vitality of entrepreneurship.
DeleteThe Economy of Malaysia is a growing and relatively open state-oriented and newly industrialised market economy. The state plays a significant but declining role in guiding economic activity through macroeconomic plans.
ReplyDeleteIn 2007, the economy of Malaysia was the 3rd largest economy in South East Asia and 28th largest economy in the world by purchasing power parity with gross domestic product for 2008 of $222 billion with a growth rate of 5% to 7% since 2007. In 2010, GDP per capita (PPP) of Malaysia stands at US$14,700. In 2009, the nominal GDP was US$383.6 billion, and the nominal per capita GDP was US$8,100.
DeleteThe Southeast Asian nation experienced an economic boom and underwent rapid development during the late 20th century and has a GDP per capita of $14,800, being considered a newly industrialized country. On the income distribution, there are 5.8 million households in 2007.
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DeleteOf that, 8.6% have a monthly income below RM1,000, 29.4% had between RM1,000 and RM2,000, while 19.8% earned between RM2,001 and RM3,000; 12.9% of the households earned between RM3,001 and RM4,000 and 8.6% between RM4,001 and RM5,000. Finally, around 15.8% of the households have an income of between RM5,001 and RM10,000 and 4.9% have an income of RM10,000 and above.
DeleteAs one of three countries that control the Strait of Malacca, international trade plays a large role in its economy. At one time, it was the largest producer of tin, rubber and palm oil in the world. Manufacturing has a large influence in the country's economy.[17] Malaysia is the world's largest Islamic banking and financial centre.
DeleteSince it became independent in 1957, Malaysia's economic record has been one of Asia's best. Real gross domestic product (GDP) grew by an average of 6.5% per year from 1957 to 2005. Performance peaked in the early 1980s through the mid-1990s, as the economy experienced sustained rapid growth averaging almost 8% annually.
DeleteHigh levels of foreign and domestic private investment played a significant role as the economy diversified and modernized. Once heavily dependent on primary products such as rubber and tin, Malaysia today is a middle-income country with a multi-sector economy based on services and manufacturing. Malaysia is one of the world's largest exporters of semiconductor components and devices, electrical goods, solar panels, and information and communication technology (ICT) products.
DeleteMalaysia's capital market crossed the RM2 trillion threshold for the first time ever as at end-2010. The capital market had achieved an annual compounded growth rate of 11% from RM717bil in 2000 due to rapid industry expansion and strong regulatory oversight that underpinned investor confidence in the Malaysian capital market.
DeleteDiharap tahun ni kerajaan dapat mencapai sasarannya.
ReplyDeleteselepas perhimpunan Bersih dan perhimpunan2 lain yang dianjurkan pembangkang dan penyokong2nya, pasti kedudukan ekonomi negara akan lebih teruk..
ReplyDelete