KUALA LUMPUR, Dec 17 ― Malaysia’s economic growth is less volatile and more robust than Singapore’s as a result of the Najib administration’s shift towards the domestic economy, Barisan Nasional (BN) said today.
The ruling coalition highlighted the increasingly divergent GDP growth trends of both countries over the years, with Malaysia’s economic growth hitting 4.7 per cent, 6 per cent, and 5 per cent from 2013 to 2015, as well as an estimated 4.2 per cent this year and a forecast 4 to 5 per cent next year.
Singapore’s GDP growth, on the other hand, was 3.9 per cent, 2.9 per cent and 2.1 per cent from 2013 to 2015, an estimated 1.4 per cent this year and a forecast 1.5 per cent next year.
“The reason why Malaysia has been more resilient post 2009 is a deliberate effort by PM Najib's Economic Transformation Program not to be overly-dependent on world commodity prices, on international trade alone and on foreign investments as we were in the past,” said the BN strategic communications team in a statement, referring to Datuk Seri Najib Razak.
“Due to a deliberate shift in policies, Malaysia's growth is now less volatile and more robust compared to our close neighbor. For the first time in decades, we are now growing stronger than them on a sustained basis.
“The government has shown its commitment to continue to rebalance the domestic economy and bridge the urban-rural and east-west divide,” they added.
BN said the Najib administration has reduced Malaysia’s reliance on petroleum-related income from more than 41.3 per cent in 2009 to 14 per cent now.
According to BN, the government also focused on increasing the income levels of the bottom 40 per cent and on reducing income inequality with policies like the minimum wage, BR1M, rural development aid, as well as development projects in the rural areas.
“Any funds directed to areas that are less developed compared to the more developed urban centres would have a greater multiplier effect on our sizeable domestic economy,” said BN.
BN added that there was a larger focus on gross national income (GNI) growth compared to gross domestic product (GDP), which included foreign-owned firms in the country.
“Specifically there was a focus on increasing the level of domestic investments to be higher than foreign investments,” said the ruling coalition.
“Current and future projects such as the East Coast Rail Link, Pan Borneo Highway, Central Spine Road and Pengerang is a testament to this commitment to develop regions and communities that have lagged our west corridor.
“This can only mean that Malaysia's economy will be more resilient, more equal, more sustainable and less volatile compared to the past,” they added.
