Malaysia - Call for steps to ensure growth momentum

The coming budget should include steps to ensure growth momentum in the domestic market as economies in developed nations continue to stay weak.

“Structural measures need to be introduced to prepare for any aftershocks next year,” said Institute of Strategic and International Studies (Isis) Malaysia chief executive Datuk Dr Mahani Zainal Abidin.

The budget should introduce measures to restructure the economy to ensure it stays competitive and discuss how the government would effectively help people who need support.

Mahani, speaking to reporters at the launch of the Asia-Pacific Trade and Investment Report 2011 yesterday, said Malaysia is set to benefit from the growing inter-regional demand, especially with China.

“As a major export destination for regional products, China accounted for 35 per cent of goods from within Asia,” she said.

With Asia’s rapid development and openness, the region was able to absorb imports faster after the recent economic slowdown. It is also a big market for Malaysia to further boost its exports.

Mahani reckons Malaysia could achieve the desired 6 per cent economic growth if exports were to grow well this year.

“I think Malaysia’s economy has reached a level that has its own resilience. So, if we can increase investments domestically, I think we can achieve 5 per cent. Of course, if exports are reasonable, I think we can achieve 6 per cent,” Mahani said.

Meanwhile, Professor Tham Siew Yean, Principal Fellow for the Institute of Malaysian & International Studies, said UNESCAP (United Nation Economic and Social Commission for Asia and The Pacific) estimated Malaysia’s exports to Asian countries to grow 7.9 per cent this year and 6.7 in 2012.

“I believe the number will go up in no time,” she said.

In 2010, Malaysia’s exports to the region grew 9.8 per cent, after contracting the year before, following a slowdown in the US market.

BTimes

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