DPM: Economy growth for 2019 achieved without excessive hike on goods, services

Radzi Razak
Deputy Prime Minister Datuk Seri Dr Wan Azizah Wan Ismail speaks during the launch of the Putrajaya Literacy in Financial Technology (LIFT) festival December 29, 2019. ― Picture by Shafwan Zaidon

PUTRAJAYA, Dec 28 — Malaysia’s economy grew 4.6 per cent until September this year, and this was accomplished without an excessive price hike on goods and services, said Deputy Prime Minister Datuk Seri Dr Wan Azizah Wan Ismail.

She said the growth did not stray from the government’s target of 4.9 per cent during the Budget 2019 tabling last year and is in line with the Budget 2020 revision that targeted 4.7 per cent growth.

“This growth was also achieved without the sharp increase in prices of goods and services.

“This is important to ensure that the purchasing power of the people is not affected by the country’s economic development,” she said during the launch of the Putrajaya Literacy in Financial Technology (LIFT) Festival today.

Dr Wan Azizah said as of October this year, inflation is at a low level, with the rise in the Consumer Price Index (CPI) at just 1.1 per cent compared to October 2018.

“For the first 10 months of the year, inflation averaged only 0.6 per cent compared to the first 10 months of last year. This is up 1.0 per cent from the first 10 months of last year compared to the same period in 2017.

“This is a manifestation of a Government that is capable of managing and managing the economy well,” she said.

In October, the World Bank maintained Malaysia’s economic growth at 4.6 per cent in 2019, underpinned by the continued robust growth in private consumption amid stable labour market conditions.

The World Bank said the weakness in the external sector is likely to persist over the near term, with heightened uncertainty surrounding the external environment and softening global demand for electronics and electrical products constraining export growth.

On Thursday, Economic Affairs minister Datuk Seri Mohamed Azmin Ali said the government is confident that the country will attain stronger economic growth at 4.8 per cent next year considering Malaysia’s strong macroeconomic factors including highly-diversified structures, the supportive labour market, low and stable inflation, and a strong and well-capitalised financial sector.

“This outlook is higher than the estimates by the International Monetary Fund at 4.4 per cent and the World Bank at 4.5 per cent as the government remains committed in executing its development priorities,” he said in a statement.

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