Pragmatic and dynamic economic policies are expected to help steer
Malaysia through anticipated prolonged uncertainties in the global economy.
The global backdrop is not as pleasing as the domestic economy would
prefer it to be, what with crude oil expected to remain pricey and lasting
peace still elusive in the Middle East.
The Government however, is bullish that its pragmatic management of the
economy will expand gross domestic product (GDP) by 6 percent next year, a
light increase from the 5.8 percent year on year expansion forecast for 2006.
The private sector will continue to lead in expanding the economy, while
the Government formulates economic diversification policies, promotes new
sources of growth and creates an environment conducive for doing business for
both domestic and foreign investors.
On its part, the Government will seek balanced growth across the board.
It wants to improve the government machinery and all services, and enhance
profitability and competitiveness of manufacturers and exporters as well as the
livelihood of the general population.
No section of society is expected to be left out as the Government
continues to seek ways to narrow socio-economic disparities between the urban
and rural folk, Priority will be given to reducing hardcore poverty and
improving access to basic needs.
Technology and knowledge will form the backbone in Prime Minister Datuk
Seri Abdullah Ahmad Badawi’s administration’s efforts to seek new sources of
growth and wealth.
Malaysians can expect more programmes and projects in technology and
knowledge-intensive sectors, especially in information and communications
technology, biotechnology and skills-based services.
With the encouraging prospects, nominal gross national product per
capita is projected to rise to 7.2 percent to reach RM 21,168 in 2007, from RM
19,739 anticipated for this year.
And reflecting improvements in the people’s well being, per capital
income in terms of purchasing power parity is forecast to increase by 6.7
percent to US$ 12,666 (RM 46,611) next year.
From such efforts, the Government anticipates business sentiment to
strengthen next year. It has forecast a strong 10.5 percent growth in private
investment expenditure.
Money will continue to be invested in the manufacturing sector as the
Government seeks to deepen and diversify it through promoting production of
high value-added products.
Agriculture is expected to become an increasingly attractive investment
proposition, in line with the Government’s efforts to revitalise the sector
through modern farming and farm management methods.
In the services sector, recent advancements in technology, especially in
telecommunications, banking and finance as well as trade and logistics, will
ensure that investment in the sector will continue to expand next year.
Oil and gas will remain a lucrative sector, given the persistently high
crude oil prices and the ever-increasing global demand and tight supply.
Investment in the sector is expected to accelerate in 2007.
