PUTRAJAYA, Jan 26 — Malaysia’s strong economic fundamentals as well as good fiscal and monetary policies will help ensure the growth projection of between 4.5 and 5.0 per cent for this year is attained, said Prime Minister Datuk Seri Najib Razak.
Speaking at a special gathering of the Finance Ministry here today, he also said the target is better than what is expected of the national economy for last year, that is at between 4.0 and 4.5 per cent.
Najib, who is also the Finance Minister, said the prospects for global economic growth in 2017 is expected to be better at 3.4 per cent compared to 3.1 per cent in 2016.
“Global trade is also expected to rise to 3.8 per cent in 2017 compared to 2.3 per cent last year.
“However, a number or risks will remain, including an increasingly uncertain global financial market and slower growth in a number of advanced countries which needs to be given our attention,” he added.
He said it is clear that Malaysia also faced a number of domestic risks, among them a narrowing current account surplus, the decline in the ringgit’s value, rising household debt to gross domestic product, as well as the increasing cost of living.
The Prime Minister said prices for crude oil, palm oil and rubber were all showing an encouraging trend currently.
“The price for the benchmark Brent Crude has shown a rising trend at an average US$55 a barrel as of Jan 23 compared to US$44 a year ago. “With the clear commitment of the Organisation of Petroleum Exporting Countries (Opec) and non-Opec members in restricting global production, the price of Brent Crude is expected to stay at this level or improve slightly this year,” he added.
On palm oil, Najib said the rising trend for the commodity is evident in having now reached RM3,264 per metric tonne (as of Jan 23) compared to RM2,650 in 2016.
“The sharp rise in rubber prices has surely brought relief to the hundreds of thousands of smallholders in the rural areas.
“It is clear that if this trend continues, the financial position of the country will further strengthen and more programmes to ensure the well-being of the people can be implemented,” he added. — Bernama
