World Economy

Malaysia Economy Resilient

Malaysia Economy ResilientMalaysia Economy Resilient

While there is no doubt that the Malaysian economy is in challenging times, as with the rest of the world, it certainly does show a level of resilience and a promising prospect for the second half of this year and next year. This can be seen from both the economic facts and sound economic reasoning.

Malaysia’s gross domestic product expanded by 4% in the second quarter, and from January to June, the GDP grew at 4.1%. They are within the government’s target for this year’s GDP growth at 4 to 4.5%, Bernama reported.

At the just concluded Bank Negara’s Monetary Policy Committee meeting, Bank Negara Governor, Muhammad Ibrahim, reiterated that the Malaysian economy is on track to achieve this target and remains on a steady growth path not just for this year, but also in 2017.

By any standard, 4% growth rate is healthy, as it is still above average growth level, be it globally or regionally.

The World Bank has just cut the global GDP growth forecast for this year to just around 2% whereas the International Monetary Fund put it at around 3%.

Regionally, Thailand and Singapore for example, recorded a second quarter growth rate at 3.5% and 2.2% respectively. And in the context of the stage of Malaysia’s development, it is both stable and viable, as the growth rate tends to moderate over time as the economy approaches that of a high-income and developed nation status.

Meanwhile, Deputy Prime Minister Ahmad Zahid Hamidi has denied that the country is in a state of uncertainty in its economy and politics. Zahid, who is also home minister, stressed that this growth was despite the constraints of falling prices of oil and gas, which were not only experienced by Malaysia but also by other countries.