Malaysia economy grows 4-5%
KUALA LUMPUR, 23 March 2012 -
Malaysia's economy is projected to grow at a steady four to five per cent this year, anchored by the resilient domestic demand, says Bank Negara Malaysia.
The central bank said private investments would be supported by domestic-oriented industries and the ongoing implementation of projects under the Economic Transformation Programme (ETP).
Most sectors would continue to expand this year, it said in the 2011 Annual Report released today.
Domestic-oriented industries' performance is expected to remain firm, particularly the construction sector, projected to record stronger growth, backed by the implementation of major infrastructure projects and the Special Stimulus Package, it said.
While the mining sector's growth is expected to recover, the agriculture sector is likely to register a moderate growth on lower growth for both palm oil and rubber following the strong performance seen last year.
On the external front, the current account surplus is projected to remain large at RM109.5 billion or 12.2 per cent of the Gross National Income (GNI), it said.
Although gross exports are expected to record a slower growth this year, the trade account surplus would remain large, it said, adding that the surplus would be primarily supported by commodities' exports and non-E&E manufactured products.
Bank Negara also said labour market conditions are expected to soften this year pursuant to slower economic activities.
Unemployment rate is projected to increase to 3.2 per cent this year.
Job creation is projected to be concentrated in the domestic-oriented sectors, particularly in the services and construction sectors, while headline inflation is expected to moderate this year, averaging between 2.5 per cent and 3.0 per cent.
Bank Negara said the monetary policy would continue to facilitate economic growth, manage risks towards inflation and financial imbalances build-up.
Should the global economy enters a new phase of even weaker growth this year and adversely affect the Malaysian economic outlook, the Monetary Policy Committee at the central bank has the flexibility to respond to adjust the degree of monetary accommodation, it said.
With the launch of the new Malaysian currency series, Bank Negara has also engaged closely with banks, businesses and cash-handling vendors to ensure a smooth transition to the new coins and notes coming into circulation this year.
As part of efforts to enhance international cooperation, the central bank continues to be involved in technical collaborations with external agencies and central banks from other emerging economies, particularly in Islamic finance, organisational development, financial inclusion, consumer protection and financial education.
Meanwhile, Bank Negara's financial position, as audited and certified by the Auditor-General, remained strong last year.
The bank's total assets were RM473 billion for the financial year ended Dec 31, 2011.
It declared a RM2 billion dividend to the government for last year.
Source: Business Times
Back to Top
Greater Kuala Lumpur
ASEAN's rising hub for talent and innovation
What Investors Say
Chairman and Chief Executive Officer, Altran Group
"We have decided to open a regional office in Kuala Lumpur as the
city is the launch pad to Southeast Asia.
"With an attractive ecosystem for inward investment, world-class infrastructure,
strong economic frameworks and access to the rest of the ASEAN region, Kuala Lumpur
will offer a fitting environment for Altran to continue to grow our presence in
the market across our key business areas – aviation, automotive, healthcare,
telecoms and smart society.
Naeem Shahab Khan
Managing Director, Philips Malaysia Sdn Bhd
"As a facilitator of investments into Greater Kuala Lumpur, InvestKL
has been an excellent partner.
"Their ability to bring outside-in perspective, understanding of MNCs' constrains
and a consultative behaviour is commendable. GKL is also one of the best places
to nurture talent for innovation. With a more structured industry driven education
system, this can be enhanced.
Chairman, Darden Aquafarm Inc
"Kuala Lumpur is a tremendous, vibrant city. The people are very
diverse and embrace people from all walks of life.
"Kuala Lumpur is both very cosmopolitan and at the same time very warm and friendly.
There are a wide variety of cultural activities and opportunities, transportation
is good and improving, and prices are reasonable. It is a safe city and the government
is very forward thinking.
Tan Kee How
Managing Director, Oleon (Asia Pacific) Sdn Bhd
"Greater Kuala Lumpur has well established Infrastructure in terms
of logistics and IT; there is easy availability of talent for regional roles, and
availability of related service providers which are critical factors for our business.
"In addition, the ease of doing business; the simplicity of company registration,
the stable government policies (which do not change every few months) and the freedom
and ease of fund transfers are great advantages of doing business in Malaysia. InvestKL
has also been very efficient and very responsive in meeting our requirements.
Yong Tong Nye
Assistant GM (Finance & Admin Division),
Epson Precision Malaysia Sdn Bhd
"Greater Kuala Lumpur is a great place for our business; Malaysia
has investor friendly policies, attractive and competitive tax incentives, and good
"Having been in Malaysia since 1975, we have seen numerous timely reforms carried
out by the government to ease domestic regulations which allow the private sector
to continuously grow their businesses.
We rate the ease of doing business in Kuala Lumpur 8 out of 10.
Jamal A. Ainul
Chairman, Schlumberger Asia
"We are projecting stronger revenue growth from Asia following
our investments in Malaysia.
"Our manufacturing plant in Penang and regional financial hub in Kuala Lumpur will
play a key role in supporting our clients in Malaysia, Asia and the Middle East,
and in the expansion of our business in these key markets.
"Malaysia is also ideal for our financial hub as it offers highly qualified financial
professionals with excellent customer service attitudes. The country is open to
attracting knowledge-based activities and offers an excellent business environment,
with a Government committed to the development of education and infrastructure."
Mr Hiroyuki Mogi
Chairman of Toshiba Transmission & Distribution Systems Asia
“T&D technology can be highly value–added and currently
manufacturing of complex high voltage (HV) T&D equipment is mostly done in Europe
“Toshiba Corporation has selected Malaysia as a global supply chain hub, regional
full turnkey (FTK) center and an R&D center for its T&D equipment due to
the availability of excellent technical resources and its strategic location to
address the fast growing ASEAN market for these products.
“Malaysia is one of the established T&D markets in the ASEAN region, and
established reputation of Malaysian-made products supports the manufacturing requirements
in the industry.”
Senior Vice-President, Worldwide Operations, PayPal
"We chose Malaysia as its multi-lingual and skilled workforce is
ideal for our regional and global support services.
"Our regional center in Kuala Lumpur offers service and support for customers across
Southeast Asia. It also provides operational support for our global payment service.
"This demonstrates our commitment to offer a safer, more secure online payment platform
to millions of customers in the region, especially in Southeast Asia."
CEO, Citibank Berhad
"Citibank remains committed to our customers and will continue
with our investments to grow our business in Malaysia.
"Throughout our 50 over years in Malaysia and as one of the leading foreign banks
in Malaysia, Citibank has been an active contributor and leading player in the dynamic
growth of the local banking industry.
"There are significant business opportunities in Malaysia as we look forward to
to invest in Malaysia as the economy transforms under the Economic Transformation