KUALA LUMPUR, Oct 23 — Malaysia’s nominal Gross National Income (GNI) per capita is expected to increase by 5.6 per cent to RM38,438 in 2016 from RM36,397 in 2015 on the back of steady economic growth. The Ministry of Finance (MOF) said Gross Domestic Product (GDP) is expected to remain steady next year with a real GDP growth of between 4.5 per cent and 5.0 per cent, led by domestic demand.
“Private sector expenditure will remain the main driver of growth with private consumption and investment expected to grow by 6.4 per cent and 6.7 per cent, respectively.
“Malaysia’s external position is forecast to remain positive supported by better prospects for global growth and trade,” the MOF said in the 2015/2016 Economic Report released here today in conjunction with the tabling of the 2016 Budget by Prime Minister Datuk Seri Najib Razak in Parliament.
Despite a weak ringgit, inflation is expected to remain benign attributed to low oil prices and the waning impact of the Goods and Services Tax whereby for 2016, inflation is expected to range between 2.0 per cent and 3.0 per cent.
According to the report, during the first eight months of 2015, inflation stood at 1.9 per cent, significantly lower from 3.3 per cent recorded during the same period in 2014.
The ministry said the government remained committed to fiscal consolidation, whereby fiscal deficit is expected to further decline to 3.1 per cent of the GDP in 2016 from 3.2 per cent in 2015.
“Meanwhile, the Federal government debt level remains manageable within the prudent limit of 55 per cent of the GDP,” it added. — Bernama
