Deputy minister: Economy stable for now but more work needs to be done

10-Aug-2018 Intellasia | Malay Mail | 6:02 AM Print This Post

The Malaysian economy remains stable with an increase in foreign direct investment (FDI) this quarter compared to the last, the government said today.

Deputy Economic Affairs minister Mohd Radzi Md Jidin told the Dewan Rakyat today that FDI in the first quarter of 2018 reached RM12 billion, compared to RM3.4 billion in the fourth quarter of last year.

“Economic growth is supported by a 3.7 per cent inflation level, while general unemployment rates remain stable at 3.4 per cent. Overall the country’s actual economic growth for 2017 is 5.9 per cent after fully recovering from the global economic slowdown in 2016,” he said.

Mohd Radzi was responding to an oral question by Sabak Bernam MP Datuk Mohd Fasiah Mohd Fakeh, who asked about the economy’s performance before and after the 14th general election (GE14) as well as its specific effects on existing FDI in Malaysia and whether there is potential for more to be brought in.

He said the post-GE14 economic performance is yet to be fully evaluated since the proper data only covers the first half of this year whereas short-term economic indicators only reach up to May.

“The latest financial indicators revealed a capital outflow since last year, likely in response to several global factors including the loosening of the United States’ monetary policy with an increase in its interest rate, and trade tensions between it and China,

“To this the PH government has announced several measures to augment our economic standing and the government’s finances. These include stopping non-transparent financial practices, countering leakages on all bureaucratic levels, and reviewing unsustainable mega development projects,” Mohd Radzi said.

Although implementing renewal policies and the cautious early perception of foreign investors will impact the economy, he predicted this will only be temporary and will recover in the nearest future.

Mohd Radzi said the government’s future focus will be to balance between the objective of strengthening Malaysia’s fiscal position and emphasising on economic growth to counter market sentiment and increase the confidence of investors and the rakyat regarding economic prospects.

“The structural and strategic policies to determine sustainable and inclusive economic growth will be introduced in the Half-Term Study of the 11th Malaysian Plan (Kajian Separuh Penggal Rancangan Malaysia Kesebelas),” he said.


Category: Malaysia

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