The Sun
Husna Yusop
He expressed optimism in a strong growth for this year, adding that the Gross Domestic Product (GDP) for this year could achieve 5%, higher than the earlier forecast of 4%.
"We are going all out to ensure we are able to generate confidence and speedy implementation of projects and also encourage private sector to invest.
"And with higher consumer confidence, we should make this a good year in terms of economic performance," he told a press conference after witnessing the signing of a memorandum of understanding on the cooperation between Felda, Felcra Bhd and Risda.
Najib said sustained growth in private consumption expenditure and increased public sector spending had contributed to higher domestic demand, which recorded a 3% growth in the fourth quarter.
"Private consumption growth was supported by better conditions in the labour market, a low level of inflation and higher spending for the year-end school holiday period and festive season."
He also said the public sector has continued its key role of providing impetus to growth during the quarter.
"Public sector consumption expenditure expanded further by 1.3% while public sector capital spending increased substantially as the implementation of projects under the fiscal stimulus package gained further momentum during the quarter.
"During the quarter, the development expenditure of the federal government amounted to RM17.6 billion, an increase of 9.5% compared with the fourth quarter of 2008," he said.
Najib said the accelerated implementation of the government’s two stimulus packages has been a key factor in contributing to the economic recovery.
To date, over 113,000 projects under the stimulus packages have and were being implemented, involving a total value of RM17 billion and out of this, the government has made a payment of RM13.9 billion.
"Therefore, on average, the government has pumped approximately RM1 billion per month into the market from January 2009," he said.
He explained that one of the main reasons for the ability to spend this much was because of the special monitoring unit attached to the Finance Ministry which was not in existence before.
"This unit was working flat out and engaging implementing ministries and central agencies to make sure all programmes under the two packages could be implemented speedily.
"And this is one of the main reasons why we managed to achieve more than expected in terms of our economic recovery," he said.
On the external sector, Malaysia’s export performance recovered to record a positive growth of 5.1%, supported by improvements in external demand, particularly from the regional economies and from stronger commodity prices.
"Malaysia also continues to receive foreign direct investment (FDI). In the fourth quarter of 2009, gross inflows of FDI increased to RM7.2 billion, with investments mainly in the manufacturing and services sectors," he said.
Najib also said the rapid and proactive implementation of expansionary fiscal policy measures, accommodative monetary policy and comprehensive measures to ensure continued access to financing played important roles in mitigating the impact of the global recession on the Malaysian economy.
This has also brought about the rapid resumption of growth in the economy, he added. - theSun
Husna Yusop
PUTRAJAYA (Feb 24, 2010) : The Malaysian economy has turned around and recovered from the implications of the global crisis, Prime Minister Datuk Seri Najib Abdul Razak said.
It registered a 4.5% growth in the fourth quarter of last year, amid strengthened domestic and external demand. For the year 2009, the economy contracted by 1.7%, lower than -3% that was projected earlier.
Barring new serious problems in the world economy, like a major sovereign collapse, "we could safely say we have recovered from the crisis," Najib said.
It registered a 4.5% growth in the fourth quarter of last year, amid strengthened domestic and external demand. For the year 2009, the economy contracted by 1.7%, lower than -3% that was projected earlier.
Barring new serious problems in the world economy, like a major sovereign collapse, "we could safely say we have recovered from the crisis," Najib said.
He expressed optimism in a strong growth for this year, adding that the Gross Domestic Product (GDP) for this year could achieve 5%, higher than the earlier forecast of 4%.
"We are going all out to ensure we are able to generate confidence and speedy implementation of projects and also encourage private sector to invest.
"And with higher consumer confidence, we should make this a good year in terms of economic performance," he told a press conference after witnessing the signing of a memorandum of understanding on the cooperation between Felda, Felcra Bhd and Risda.
Najib said sustained growth in private consumption expenditure and increased public sector spending had contributed to higher domestic demand, which recorded a 3% growth in the fourth quarter.
"Private consumption growth was supported by better conditions in the labour market, a low level of inflation and higher spending for the year-end school holiday period and festive season."
He also said the public sector has continued its key role of providing impetus to growth during the quarter.
"Public sector consumption expenditure expanded further by 1.3% while public sector capital spending increased substantially as the implementation of projects under the fiscal stimulus package gained further momentum during the quarter.
"During the quarter, the development expenditure of the federal government amounted to RM17.6 billion, an increase of 9.5% compared with the fourth quarter of 2008," he said.
Najib said the accelerated implementation of the government’s two stimulus packages has been a key factor in contributing to the economic recovery.
To date, over 113,000 projects under the stimulus packages have and were being implemented, involving a total value of RM17 billion and out of this, the government has made a payment of RM13.9 billion.
"Therefore, on average, the government has pumped approximately RM1 billion per month into the market from January 2009," he said.
He explained that one of the main reasons for the ability to spend this much was because of the special monitoring unit attached to the Finance Ministry which was not in existence before.
"This unit was working flat out and engaging implementing ministries and central agencies to make sure all programmes under the two packages could be implemented speedily.
"And this is one of the main reasons why we managed to achieve more than expected in terms of our economic recovery," he said.
On the external sector, Malaysia’s export performance recovered to record a positive growth of 5.1%, supported by improvements in external demand, particularly from the regional economies and from stronger commodity prices.
"Malaysia also continues to receive foreign direct investment (FDI). In the fourth quarter of 2009, gross inflows of FDI increased to RM7.2 billion, with investments mainly in the manufacturing and services sectors," he said.
Najib also said the rapid and proactive implementation of expansionary fiscal policy measures, accommodative monetary policy and comprehensive measures to ensure continued access to financing played important roles in mitigating the impact of the global recession on the Malaysian economy.
This has also brought about the rapid resumption of growth in the economy, he added. - theSun
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