Subscribe in a reader | Subscribe by Email PM Najib predicted that the economy is recovering. This is considered good news as the country can see more money, and public can spend more, and producers can make more profit. Obviously, another reason for price hike. Due to demand in industries, more foreigners may be brought in to meet production quotas and also since the locals may not like such jobs.
The employment in some industries will increase, so graduates can find job after graduating next few months. That may lead to lower crime rates too.
PUTRAJAYA: The worst is over for the Malaysian economy, Prime Minister Datuk Seri Najib Razak said, predicting a five per cent expansion this year.
The economy expanded well above expectations in the fourth quarter of last year on higher domestic and external demand.It rose 4.5 per cent in the three months ended Dec 31, marking an end to three straight quarters of contraction.
For the full year, however, the country’s gross domestic product (GDP) shrank 1.7 per cent, which was narrower than the three per cent previously forecast. The GDP for 2008 was 4.6 per cent.
“With the positive performance (in the fourth quarter), the worst is over and, yes, I am bullish for 2010, provided nothing unexpected happens in the global economy, like any major power collapse and barring other unforeseen circumstances.” Najib spoke after witnessing the signing of a memorandum of understanding between Risda, Felda and Felcra here yesterday.
“We have recovered from the crisis and I expect strong growth in 2010. I am confident we can achieve five per cent this year, one or two per cent more than the earlier forecast of three per cent.” Najib, who is also finance minister, said exports recovered to expand by 5.1 per cent in the fourth quarter compared with a 22.4 per cent decline in the previous quarter.
All economic sectors recorded improved performance. In the services sector, growth was broadbased with almost all sub-sectors recording higher rates.
The manufacturing sector recorded positive growth of 5.3 per cent, reflecting the improvement in both external and domestic demand.
Activities in the construction sector expanded 9.2 per cent.
Najib said sustained growth in private consumption and increased public sector spending contributed to higher domestic demand during the fourth quarter, helped by the holiday and festive seasons.
Public sector consumption expenditure expanded further by 1.3 per cent while public sector capital spending increased substantially as the implementation of projects under the fiscal stimulus packages gained further momentum during the quarter under review.
During the quarter, development expenditure of the government amounted to RM17.6 billion (RM11.6 billion in the third quarter), up 9.5 per cent from a year ago.
Najib said to date, over 113,000 projects under the government’s two fiscal stimulus packages had been, or were being, implemented, involving RM17 billion. Of this, RM13.9 billion had been paid by the government. On average, the government has pumped about RM1 billion per month into the economy from January last year.
Foreign direct investment amounted to RM7.2 billion in the fourth quarter, up from RM6.7 billion in the third quarter.
