KUALA LUMPUR: The Malaysian economy is projected to grow between four and five per cent in 2017, with growth emanating mainly from domestic demand underpinned by strong economic fundamentals.
According to the Economic Report 2016/17 released by the Finance Ministry, it would also be supported by rakyat-centric and pro-growth measures in the 2017 Budget, with better prospects for global growth and international trade on the horizon.
Programmes and measures introduced in the 2016 Budget to address cross-cutting issues have made significant progress, resulting in a gross domestic product (GDP) growth of 4.1 per cent in the first six months of 2016.
“On the demand side, private consumption and investment activities supported growth, while the supply side was driven by the services and manufacturing sectors,” the report said.
With 11 additional measures to the 2016 Budget, coupled with the nation’s strong economic fundamentals, GDP will remain on its growth trajectory, recording four per cent to 4.5 per cent in 2016.
The government took preemptive measures to re-calibrate the Budget 2016 on Jan 28 this year to sustain economic growth and, more importantly, safeguard the well-being of the rakyat.
They were taken in view of moderate global growth, weighed down by volatility in the financial market, prolonged low commodity prices and slower growth in advanced economies.
“Given the degree of openness, these uncertainties, to a certain extent, will impact the Malaysian economy through trade and financial channels,” the report said in explaining the re-calibration exercise.