KUALA LUMPUR, May 16 — The Malaysian government will focus on encouraging investments from the private sector and also boosting investments through major projects including Bandar Malaysia and the East Coast Rail Link (ECRL), Economic Affairs Minister Datuk Seri Mohamed Azmin Ali said today.
Azmin noted that Malaysia’s economic growth is expected to be affected by factors such as the lower revised projection for global economic growth and trade, noting that such lower projections take into account the effects of the US-China trade policies and the risk of the rise in global oil prices following expected disruptions in crude oil supplies.
“Therefore, the Malaysian Government will place its focus on increasing domestic economic activities by encouraging the private sector to continue driving investments. The government has also taken the step of speeding up investment activities through the re-implementation of projects that were previously delayed, such as Bandar Malaysia and the East Coast Rail Link (ECRL),” he said in a statement today.
Azmin said Malaysia’s proactive participation in China’s “Belt and Road Initiative” (BRI) is expected to result in a huge spill-over effect on the economy through an increase in foreign direct investment (FDI) and increased connectivity with the global economy.
“Malaysia has the potential to be the gateway to the regional market that numbers more than 650 million people with rising buying power,” he said.
Azmin further noted that the government had this year allocated RM54.7 billion in development expenditure to further support the country’s economic growth, adding that Putrajaya will also ensure the implementation of more than 3,700 development projects, including the building of schools, hospitals, roads and other infrastructure.
Earlier in his statement, Azmin said that Malaysia has succeeded in maintaining the country’s momentum with an economic growth rate of 4.5 per cent in the first quarter of 2019, despite challenging external factors such as the continued trade tensions between US and China, the uncertainty in monetary policies of developed countries and slower economic growth in Asian countries.
The country’s growth which moderated from 4.7 per cent in the fourth quarter of 2018 is supported by the country’s strong economic fundamentals and diversified sources of growth that is not dependent on any particular sector or market, Azmin said.