Malaysia
economy to grow 4.2pc: MIER
Malaysia’s domestic
consumption and government spending will support growth as overseas demand
eases, the Malaysian Institute of Economic Research said, adding pressure on
Prime Minister Datuk Seri Najib Razak to bolster the economy as the global
recovery falters.
Southeast Asia’s third-largest economy will grow 4.2 percent this year and 4.7 percent in 2013, the institute said in a statement in Kuala Lumpur today. Its estimate for 2012 was unchanged from a previous forecast. Malaysia must have economic growth of 5 percent to 6 percent annually to avoid facing “many problems,” Najib said in a speech today.
Growth in Malaysia is supported by Najib’s record spending ahead of a general election that must be called by early 2013. He has raised civil servant salaries and pensions, waived school fees and increased handouts for the poor under a RM232.8 billion (US$74 billion) budget this year and the government proposed last month to expand the annual allocation by RM13.4 billion.
“Going forward, domestic demand is expected to remain the main economic growth driver given the negative external developments, with private and government consumption continuing as key economic growth drivers,” the institute said in its statement.
Southeast Asia’s third-largest economy will grow 4.2 percent this year and 4.7 percent in 2013, the institute said in a statement in Kuala Lumpur today. Its estimate for 2012 was unchanged from a previous forecast. Malaysia must have economic growth of 5 percent to 6 percent annually to avoid facing “many problems,” Najib said in a speech today.
Growth in Malaysia is supported by Najib’s record spending ahead of a general election that must be called by early 2013. He has raised civil servant salaries and pensions, waived school fees and increased handouts for the poor under a RM232.8 billion (US$74 billion) budget this year and the government proposed last month to expand the annual allocation by RM13.4 billion.
“Going forward, domestic demand is expected to remain the main economic growth driver given the negative external developments, with private and government consumption continuing as key economic growth drivers,” the institute said in its statement.
Asian policy makers have cut
interest rates or signaled they have scope to add monetary and fiscal stimulus
to bolster their economies as Europe’s debt crisis curbs demand for goods. Bank
Negara Malaysia left the benchmark overnight policy rate at 3 percent for a
seventh straight meeting this month as inflation eased. -- Bloomberg
Source : New Straits Times
Date : 17 July 2012
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