Malaysia economy to grow at 5-6 pct this year-Central Bank
KUALA LUMPUR, March 23 (Bernama) -- The Malaysian economy is projected to grow at five per cent to six per cent this year, supported mainly by continued expansion in domestic demand, says Bank Negara Malaysia (BNM).
The growth projection between five per cent and six per cent was based on the moderate growth expectation in advanced economies and a return to more normal growth rates by the Asian economies, the central bank said in its annual report released Wednesday.
Not withstanding robust domestic demand, it said that a rapid deterioration in external conditions could have significant adverse spill over effects on the overall economy through investment and employment channels, while also affecting overall sentiments.
While external demand was expected to moderate this year, growth contribution of net exports would turn around to be positive, amid a larger trade surplus on sustained commodity exports to the Asian region, it said.
The central bank said domestic demand was expected to maintain a strong growth momentum driven mainly by a robust expansion in private sector activities while private consumption would be supported by favourable labour market conditions, higher disposable income and sustained consumer confidence.
The employment situation was anticipated to improve particularly with higher job creation in the domestic-oriented manufacturing and services sectors.
It said the expectation for further increases in private sector salaries and continued high commodity prices would raise household income.
In addition, access to credit would also provide support to household spending this year, it said.
Bank Negara said this would be supported by capital spending by the domestic-oriented industries given the high levels of capacity utilisation and positive business confidence as well as the implementation of key initiatives announced by the government under the Economic Transformation Programme.
Meanwhile, the public sector would r! emain su pportive of growth with higher capital spending projected in the second half of this year, said the central bank.
It said this was attributable mainly to the implementation of new projects and acceleration of ongoing projects to promote private sector activities.
All economic sectors are projected to expand firmly this year, aided mainly by continued growth in domestic demand.
Bank Negara said the services and manufacturing sectors are expected to expand albeit at a more moderate pace given the high statistical base of 2010.
The services sector would remain the largest contributor to growth, fuelled by the domestic demand-oriented sub-sectors, particularly wholesale and retail trade, finance and insurance and communications, it added. (Bernama)
The growth projection between five per cent and six per cent was based on the moderate growth expectation in advanced economies and a return to more normal growth rates by the Asian economies, the central bank said in its annual report released Wednesday.
Not withstanding robust domestic demand, it said that a rapid deterioration in external conditions could have significant adverse spill over effects on the overall economy through investment and employment channels, while also affecting overall sentiments.
While external demand was expected to moderate this year, growth contribution of net exports would turn around to be positive, amid a larger trade surplus on sustained commodity exports to the Asian region, it said.
The central bank said domestic demand was expected to maintain a strong growth momentum driven mainly by a robust expansion in private sector activities while private consumption would be supported by favourable labour market conditions, higher disposable income and sustained consumer confidence.
The employment situation was anticipated to improve particularly with higher job creation in the domestic-oriented manufacturing and services sectors.
It said the expectation for further increases in private sector salaries and continued high commodity prices would raise household income.
In addition, access to credit would also provide support to household spending this year, it said.
Bank Negara said this would be supported by capital spending by the domestic-oriented industries given the high levels of capacity utilisation and positive business confidence as well as the implementation of key initiatives announced by the government under the Economic Transformation Programme.
Meanwhile, the public sector would r! emain su pportive of growth with higher capital spending projected in the second half of this year, said the central bank.
It said this was attributable mainly to the implementation of new projects and acceleration of ongoing projects to promote private sector activities.
All economic sectors are projected to expand firmly this year, aided mainly by continued growth in domestic demand.
Bank Negara said the services and manufacturing sectors are expected to expand albeit at a more moderate pace given the high statistical base of 2010.
The services sector would remain the largest contributor to growth, fuelled by the domestic demand-oriented sub-sectors, particularly wholesale and retail trade, finance and insurance and communications, it added. (Bernama)
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