Malaysia Economy Growth Rate

Malaysia’s Economy Growth Rate

Year	GDP growth
2006	5.9%
2007	6.3%
2008 (estimated)	5 - 6%

INTRODUCTION

Global growth was strong and driven by above-trend growth in most industries economies and buoyant growth in emerging market economies, despite moderation in the US economy, higher oil prices and the onset of financial market turbulence.

The Malaysian economy continued its strong growth momentum. Growth was driven by robust domestic demand despite a weaker external environment. Robust domestic demand was driven mainly by strong expansion in private sector activities.

1. Strategies to enhance the economy growth rate:

a. Promote the 5 economic corridors in a clearer way; let the SME and foreigners understand the incentives and opportunities in these areas.

b. Increase the activity to lobby for more FDI into Malaysia by MITI.

c. Encourage private spending by business communities. Development projects to be driven by Business community rather than by government.

d. Increase the activities and incentives in the agricultural sector to promote self sufficient of food as a way to decrease the import of food (expensive price internationally now).

2. If the economy goes in GOOD conditions:

a. The Malaysian economy is expected to remain on a steady growth path, expanding by 5 - 6% in 2008, supported by resilient domestic demand.

b. The emergence of domestic demand and public spending from robust services sector.

c. Malaysia’s export market increasingly diversified, to all over the world.

d. Malaysia is commodity producer, will continue to benefit from high prices of crude oil, palm oil and rubber.

3. If the economy goes in BAD conditions:

a. Economy slowdown in US will affect Malaysia in consumer and business sentiments.

b. Private consumption and private investment or FDI to Malaysia will slow down.

c. Higher inflation rate and low-medium income family will get affected.

d. Manufacturing sector will slowdown, causing lower export and further worker retrenchment.

e. Government will have to enhance their policy to counter economy slowdown, such as: adjust monetary system and increase fiscal incentives to all business communities.

f. Subsidy must be given to the right people (poor and hardcore poor family) with a good system to elevate their daily living difficulties.

4. How to enhance the economy cake:

a. Push for open tender system in all government projects and services. We want an efficient system to encourage the business community to compete equally.

b. More representatives for all ethnic in all working level of civil services.

c. Cut down the 30% bumiputra restriction for foreign and local investment in Malaysia as this will restrict the foreigner to invest in Malaysia because it is not business friendly. We hope that there will be more liberalization in the business environment.