Economy
High GDP growth driven by domestic consumption in 2013
According to the Malaysian Institute of Economic Research (MIER), the country's economy is expected to grow 5.6 percent this year, driven primarily by its domestic economy. However, inflation is expected to rise to 2.5 percent due to an increased inflow of capital into the manufacturing sector.
The institute also forecasts the nation's gross domestic product (GDP) for the year 2014 to be within 5 and 6 percent with inflation to be maintained at 2.5 percent.
Dr. Zakariah Abdul Rashid maintains that at this rate Malaysia's economic growth is faster than the global economic growth, which is projected at 3.3 percent in 2012 and 3.6 percent in 2013.
He cited Malaysia's strategic location in the world's most dynamic region as the main reason for the high growth.
However he still considers domestic investment as the primary engine of growth. This is due to the on going implementation of the government's Economic Transformation Programme, better export data, and the continuance of negative developments overseas.
Private consumption made up more than half of the nation's real GDP in the third quarter of 2012, at 52.5 percent. This is more than four times the number of government consumption at 11.9 percent.
"As private consumption's share of real GDP is the largest among the expenditure components that make up domestic demand, it is critical to ensure that the growth is sustainable and able to continue to support the overall economic growth," Zakariah stressed.
The government's initiatives in providing cash hand-outs and bonuses for civil servants as well as the newly implemented minimum wage are factors that are expected to help maintain the growth of private consumption spending.
In the case of inflation, Zakariah commented that the 2.5 percent rate is a little higher than the inflation rate last year. However, this is still acceptable as it is the rate that facilitates growth. - Insight Sabah
Posted on January 18, 2013
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Do not take for granted the support given by the people. We, the elected representatives, must work hard to ensure the promises we made during the 13th general election are implemented accordingly.
The newly reappointed Sabah Chief Minister, Datuk Seri Panglima Musa Aman, speaking at a thanksgiving ceremony held at Sandakan's Sri Libaran Hall on May 16th recently.
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I encourage more companies in Malaysia to do likewise by playing a bigger role in conservation, as it is only through our collective efforts, that we will be able to pass on a beautiful country to our future generations.
Chief Minister Datuk Seri Musa Aman congratulated Astro for taking the initiative to organise the record breaking under water clean-up.
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We know of the people's aspirations... They want development so as to raise their quality of life. This is our struggle, we want to ensure progress for the people.
UMNO Deputy President Tan Sri Muhyiddin Yassin speaking to the Sandakan community at the 'An Afternoon with the Deputy Prime Minister' event yesterday.
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Sabah is blessed with a wealth of natural treasures and for this reason, it is everyone’s responsibility to work together and do their part in keeping our streets, parks and beautiful beaches clean for all to enjoy.
Kota Kinabalu City Mayor Datuk Abidin Madingkir commenting on the Quality Environmental Practices Certification(5S) report presented by the Malaysia Productivity Corporation (MPC) to the Cleanliness and Environmental Health Department (JKKP) of KK City Hall yesterday.
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Change is already taking place and change from within is what the government has done.
Prime Minister Datuk Najib Tun Razak referring to the success of the National Transformation Program that has already changed the nation for the better.