Consumer spending to grow 5-6pc this year, says minister

Second Finance Minister Datuk Seri Johari Abdul Ghani delivers his keynote address during CIMB 10th Annual Malaysia Corporate Day in Kuala Lumpur January 4, 2018. — Picture by Yusof Mat Isa
Second Finance Minister Datuk Seri Johari Abdul Ghani delivers his keynote address during CIMB 10th Annual Malaysia Corporate Day in Kuala Lumpur January 4, 2018. — Picture by Yusof Mat Isa

KUALA LUMPUR, Feb 9 — Consumer spending is expected to grow by about five to six per cent this year in line with the country’s economy, said Minister of Finance II Datuk Seri Johari Abdul Ghani.

He said Malaysia’s economy was expected to expand by between five and 5.5 per cent this year.

The increase in purchasing power was due to the rise in disposable income following the government’s move to reduce individual income tax rate by two per cent in the 2018 Budget, he said.

“For those in the middle 40 per cent group, it will increase their disposable incomes which are available for spending,” he told reporters after the launch of Small and Medium Enterprises Loan/Financing referral platform here today.

On the strengthening of the ringgit, Johari said, this proved that the economy’s fundamentals were improving, including the growth in exports and trade, rising oil prices and inflow of money from foreign investors into the country. — Bernama

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