KUALA LUMPUR, Oct 10 (Bernama) — The final year of the 10th Malaysia Plan next year will see a steady push from the private sector, with private investment remaining vibrant and registering a double-digit growth. According to the 2014-2015 Economic Report issued by the Finance Ministry, the positive performance was due to support from the ongoing implementation of the plan – Economic Transformation Programme (ETP) and Government Transformation Programme (GTP). “Although private consumption is expected to be moderate, the favourable employment outlook, government assistance through cash transfers and lower individual income tax, as well as higher household income, are expected to cushion the impact of higher prices on consumption,” according to the report released today.
The report said public investment would continue to support growth with higher capital spending by the Non-Financial Public Enterprises (NFPEs). According to the report, the 11th Malaysia Plan (11MP) scheduled to be tabled next year is expected to focus on further strengthening growth in several areas, namely services and manufacturing, harnessing human capital and promoting entrepreneurship, particularly among the youth. Furthermore, 11MP would also focus on enhancing environmental management; improving well-being of the rakyat, as well as enhancing inclusiveness, said the report.
“The 11MP is also expected to promote greater dynamism of the private sector, especially Small and Medium-sized Enterprises (SMEs) to boost their contribution to the economy,” it added. The document stated that fiscal policy in 2015 would continue to focus on improving the financial position of the government, supportive of economic growth and reform initiatives. document remarked that the total Federal Government expenditure was projected at RM271.9 billion while revenue was estimated at RM235.2 billion.
“Meanwhile, the government will ensure debt is capped at below 55 per cent of the Gross Domestic Product (GDP) while ensuring revenue will be sufficient to meet operating expenditure. “Greater inter-agency cooperation will continue to be promoted in the implementation of programmes to avoid wastage and duplication, as well as optimise the use of public assets,” said the report.