For illustration purpose only.

KUALA LUMPUR, Oct 11 – Prospects for the Malaysian economy remain robust amid increasing uncertainties in the external environment with the country’s real gross domestic product (GDP) expected to grow by 4.7 per cent and 4.8 per cent in 2019 and 2020 respectively.

The Economic Outlook Report 2020 released by the Ministry of Finance today said the growth is underpinned by resilient domestic demand, particularly household spending following a stable labour market and low inflation.

Supported by strong fundamentals, the Malaysian economy is expected to remain resilient despite global economic uncertainties, the report said.

It said private sector expenditure would remain the key driver of growth with private consumption and investments rising 6.9 per cent and 2.1 per cent respectively in 2020, while public sector expenditure is forecast to rebound, following an improvement in investments.

According to the report, various efforts have been made to elevate the people’s purchasing power such as the reintroduction of the Sales and Service Tax (SST) on Sept 1, 2018, and standardisation of the minimum wage at RM1,100 on January 1 this year.

These measures are aimed at benefitting the people, particularly the B40 households," it said.

It also said other measures to assist the B40 group include the introduction of MySalam on Jan 24 this year and aimed at providing affordable public healthcare protection and an improvement to the Cost of Living Aid (BSH) to benefit the needy.

“To provide better and broader coverage of social safety net for the people, the government has also implemented programmes such as the Employees Provident Fund Contribution Scheme for

Housewives (i-Suri) which received a positive response from the people,” it added.

The government also launched the National Anti-Corruption Plan 2019-2023 on Jan 29 this year to inculcate good governance, integrity and zero-tolerance towards corruption among all Malaysians.

These initiatives augur well for Malaysia in its efforts to become a developed and dignified nation.

The report said on the supply side, the expansion is expected to be broad-based, with all sectors registering positive growth.

However, it said despite an anticipated expansion, external uncertainties posed downside risks to the growth prospect.

To minimise the risks and drive the economy, the government will implement measures to harness economic opportunities, level up human capital, ensure inclusivity and revitalise public institutions and public finances.

This will lay the foundation for the crystallisation of the objectives of the Shared Prosperity Vision 2030 and for Malaysia to reemerge as an Asian Tiger.

– BERNAMA