Strength of domestic interest and investment to bolster economy
San Francisco, CA -- (SBWIRE) -- 01/04/2013 -- While the external and world-wide market may not be the most hospitable at times, Malaysia is set to enjoy a continued growth next year across its economic landscape.
The growth is to be bolstered primarily by the demand within the country as well as domestic investments.
Some expect little more than moderate growth compared to last year's numbers; yet, the expansion of demand in the domestic setting is supported by private-sector spending. That demand is expected to offset weak growth in the national export and aid the country with reduced budget deficits.
With a higher flow of income from construction, tourism, services, as well as oil & gas sectors, the country can expect a positive outlook for the upcoming year.
With all the aforementioned growth possibilities, the country is moving ever-closer to growth of more than 5% in total within 2013. Experts are expecting the country to achieve an impressive GDP growth of 4.7% in the first quarter, with 5.6% in second, and 5.2% in the third.
Such economic projections are set between 4.5% and 5.5%, albeit within the challenging global economy.
RAM Holdings Bhd is one of the optimists in regards to Malaysia's growth. It maintains that the country's GDP will be forecast at 5.3% over the next 12 months, due to the double-digit growth within the private investment sector in the first three quarter of 2012.
Dr. Yeah Kim Leng stated that the government, if able to sustain the positive private investment growth, will be able to maintain at above 5% throughout 2013.
“Our domestic demand growth strategy has to encourage and promote confidence in the private sector and create a business environment that encourages them to invest locally,” Yeah said.
Investment and Securities firm JPMorgan (Malaysia) Sdn Bhd, expects Malaysia's GDP to be growing at a 5.2% this year, with a 4.5% over the 2013 fiscal year.
Douglas McWilliams, who sits as Chief Economic Advisor to the Institute of Chartered Accountants in the UK, took a modest approach to his forecasting of the Malaysian market, setting it at a mere 3.8% over the next year.
“Our forecast for 2013 is not much lower than 5.0%, (but) because the first number is three, psychologically it looks the gap is much more wider, in fact it is just a 1.2% lower than the government’s forecast.”
“We’re forecasting a world GDP growth of about 3.8% and Asean to grow 3.5%, and that is a pretty good result,” he added.
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