Malaysia is expected to record a stable economic growth this year despite global economic uncertainty, including the drop in crude oil price, the Dewan Rakyat was told.
Deputy Finance Minister Datuk Chua Tee Yong said this was despite the volatile finance market and the sluggish regional economy that had also impacted the country.
“In the first half of 2015, Malaysia recorded a Gross Domestic Product (GDP) of 5.3 per cent, supported by strengthening of domestic demand especially private consumption. In terms of economic offering, growth is supported by overall growth from all sectors.
“Taking into consideration the main economic indicators, the challenging external environment as well as moderate global growth, Malaysia’s economic prospect this year is projected to record a stable growth between 4.5 per cent and 5.5 per cent supported with the resilient domestic economic activities.
“The International Monetary Fund has projected Malaysia’s GDP to be at 4.7 per cent this year,” he said in reply to a question by Datuk Dr Makin@Marcus Mojigoh (Barisan Nasional-Putatan).
Chua said among the measures adopted by government to cushion the global impact on the country’s economy include re-activation of ValueCap fund of RM20 billion; a RM5 billion working capital guarantee scheme for Small-Medium Enterprises (SME) in the service sector; another RM2 billion for other sectors; import duties exemption on 90 tariffs consisting of spare parts, depletable resources, research items that are not locally-produced until the global economy recovers; and the continuation of the Domestic Investment Strategic Fund with an addition of RM1 billion throughout the 11th Malaysia Plan.
“For the tourism sector, the government has allocated an additional budget of RM80 million for promotional activities in selected markets like Asean, China and India. The economy is diversified to reduce dependency on certain sectors.
The commodity sector now only contributes to 18 per cent of Malaysia’s GDP.” He said Bank Negara Malaysia, the Securities Commission and related agencies have carried out initiatives to develop capital market.
“The bond market, for instance, has grown from 73.3 per cent of the GDP in 2000 to 95.3 per cent of GDP in the second quarter of 2015,” said Chua.