Malaysia’s economy expected to register growth in 2010, says Minister

Date: 2009/11/11


KUALA LUMPUR: The country's economy is expected to make a recovery with a projected growth of between two and three per cent next year, the Dewan Rakyat was informed today.
Deputy Finance Minister Datuk Dr Awang Adek Hussin said the growth is achievable with the government's deficit financial position which is expected to improve to 5.6 per cent of the gross domestic product (GDP) compared with 7.4per cent this year.

"The current account is expected to continue to register large surpluses amounting to RM91 billion in 2010," he said.

He was replying to a question from Charles Anthony Santiago (DAP-Klang) who wanted to know the government's plan to counter the economic downturn in theevent that the world's economic recovery changes from U to W as predicted by several economists.

Awang Adek said for next year, the world's economy will expand and strengthen at a 3.1 per cent rate with world trade expected to recover at a 2.5per cent rate from a contraction of 11.9 per cent last year.

"In line with the expanding economy and recovering global trade, as well as the immediate and effective implementation of two economic stimulus packages and a more relaxed monetary policy, the GDP is making a recovery, contracting at a lower rate of 3.9 per cent in the second quarter of 2009 after seeing a significant contraction of negative 6.2 percent in the first quarter," he said.

"With this improved development, for the whole of 2009, GDP is being projected at a negative 3.0 per cent which will be better than the earlier estimate of between negative four to negative five as announced on May 28," he said.

Awang Adek said the recently announced 2010 Budget, aimed at gearing the country towards a higher income economy, has been ensured to bring forthholistic and sustainable development with the people's welfare as priority.

It is to be the foundation for the formation of the new economic model, he said. The efforts are expected to raise the per capita income by more than double in the next 10 years.

To a supplementary question from Datuk Seri Dr Fong Chan Onn (BN-Alor Gajah)who wanted to know the government's efforts to attract back Malaysian experts working outside the country because of higher salary offers, Awang Adek said the country cannot be compared on a "dolar to dolar basis."

"Currently, we have a lower cost of living so there cannot really be a basis for dollar to dollar comparison," he said. - Bernama