KUALA LUMPUR: Malaysia will continue to deliver robust growth, well-backed by its diversified economy, a wide range of reform initiatives and strong macroeconomic policy frameworks to withstand external shocks, said the World Bank Group.
The World Bank’s Development Prospects Group director, M Ayhan Kose, said the Malaysian economy has been doing well and the real growth rate for 2017 would likely be better than that of 2016.
“Over the longer term perspective, Malaysia has undertaken a wide range of reforms and these had created the type of benefits that you (can) expect in an economy.
“The economy is much more diversified today than it was 20 years ago, with institutions stronger and so are the macroeconomic policy frameworks. So the potential growth is still at a higher respectable level,” he told reporters after a briefing on the “Global Economic Prospects” here today.
Last month, the World Bank, in its Global Economic Prospects report, said Malaysia’s gross domestic product (GDP) growth was expected to grow at 5.2% this year.
Kose said the report also emphasised the repetition of the global crisis history and recession, saying these major incidents should have prepared the countries to implement necessary policies to help them weather any such shocks.
“This doesn’t necessarily mean that there will be another recession soon.
“At the same time, given the fact that history simply repeats itself, it’s a good idea to get ready to make sure that the financial system is resilient and policy space available to implement the type of policies necessary to stimulate the economy if that type of crisis happens,” he said.
The global financial crisis, which struck in 2007–2008, was considered the worst financial crisis since the Great Depression of the 1930s. It affected many countries worldwide.
Malaysia and many East Asian countries had previously experienced a financial crisis in 1997. It started in Thailand following the baht devaluation after the Thai government decided to break its peg with the US dollar.
Other countries affected at the time had included South Korea, Indonesia, Singapore and the Philippines.