PUTRAJAYA (Bernama) – Malaysia’s economic growth next year is expected to outpace the International Monetary Fund’s (IMF) revised global economic growth of 3.8 per cent, says Minister in the Prime Minister’s Department, Datuk Seri Abdul Wahid Omar.
Abdul Wahid said Malaysia has been boosting its domestic consumption and investment and at the current momentum the economy should be able to continue growing by between five-six per cent over the next couple of years.
The IMF on Tuesday downgraded its outlook for global economic growth for 2015 from four to 3.8 per cent, citing persistent weakness in the eurozone and a broad slowdown in several major emerging markets.
He said IMF’s revised projection was partly due to slower growth in China, a key driver of the global economy.
The leading indicators from the Department of Statistics Malaysia also suggested that private sector activity would remain as the key driver of growth, he said.
On the fixed capital formation, Abdul Wahid said, it has been moving up quite nicely.
The private sector contributed about 71 per cent of the total investment, he said.
“This is very much in line with our intention for private sector to drive investments in Malaysia,” he said at a media briefing yesterday on the coming Regional Statistical Conference in Kuala Lumpur from Nov 16-19, 2014.
The Economic Transformation Programme was also on track and Malaysia should be able to continue to sustain a decent growth rate, he said.
“However, being a trading nation, we rely on the growth of our trading partners as well. As long as our trading partners continue to growth, as long as the global economy is growing, we will too,” he said.
Geopolitical issues might also have impact on all countries, he said.
“The extent of the impact can be manageable. If our economic fundamentals are strong, given our diversified economy, given our strong financial system, then we would be able to respond,” he said.
Abdul Wahid said that was exactly what happened during the global financial crisis in 2008.
“Malaysia did not suffer badly during the crisis because the companies were able to sustain themselves and because of that they were able to retain their employees,” he said.