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Malaysia revises down growth target till 2020
Last Updated: 2018-10-19 13:17 | Xinhua
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The Malaysian government has revised down its growth target for 2018 to 2020 to between 4.5 percent and 5.5 percent, and the country might see a delay in achieving the high-income nation status, according to its mid-term review of the 11th Malaysia Plan released Thursday.

The new growth projection was after the country achieved a lower average growth of 5.1 percent from 2016 to 2017. Its original growth target of the 11th Malaysia Plan, which covers the year 2016 to 2020, was 5 percent to 6 percent.

The mid-term review reports the progress achieved in 2016 to 2017 and outlines the realignment of socioeconomic policies and strategies for 2018 to 2020, taking into account priorities of the new Malaysian government following the general election in May.

The report was presented by Prime Minister Mahathir Mohamad at the parliament.

"We want Malaysia to be united. We want Malaysians succeed and enjoy the nation's wealth," said Mahathir.

Given the current pace of growth parameters, the target of a high-income economy raised by Mahathir as Vision 2020, is expected to be achieved later.

Based on the revised growth target, gross national income (GNI) per capita is expected to reach 47,720 ringgit or 11,700 U.S. dollars in 2020, in line with moderate inflation.

"This is about 6 percent below the estimated minimum income threshold of a high-income nation. Malaysia is expected to achieve this income threshold by 2024," said the mid-term review.

The report said the policy priorities will be balancing the objectives of fiscal consolidation and ensuring more inclusive economic growth.

According to the report, the new growth will be supported by sustained domestic demand, especially from private sector expenditure.

Private consumption will continue to be a major source of growth and is expected to expand at an annual average rate of 7 percent, supported by favorable labor market conditions and continued growth of income levels.

Public consumption, however, is expected to grow moderately by 0.3 percent per annum, with emphasis on optimizing public expenditure without affecting the quality of public service delivery.

The government will also further strengthen the ecosystem for private investment to continue as the growth catalyst, with a targeted growth of 5.7 percent per annum. While public investment is projected to contract at 0.8 percent per annum, due to the revision of major infrastructure projects.

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