PUTRAJAYA, Jan 20 – Malaysia is not in an economic crisis and has the resilience to weather the external storm. This is the main point highlighted by Prime Minister Datuk Seri Najib Razak today during a special address on the current economic developments and the country’s financial position.
Growth forecast has however been lowered to 4.5-5.5 per cent for 2015. The prime minister announced six key takeaways on the current health of the economy. They include spending as planned the RM48.5 billion allocation for development expenditure under Budget 2015; and a RM5.5 billion ringgit cut in operating expenditure.
“The development projects are people-centric ones such as local housing, flood mitigation, water supply, public utilities, key infrastructure such as the Pan-Borneo Highway, MRT Line 2, LRT3 and KL-Singapore High Speed Rail.” He also outlined proactive strategies to act as a reality check against the weak oil price scenario.
The strategies are ensuring a balanced, inclusive and sustainable economic growth; continuing fiscal reforms and consolidation; providing assistance to the people and businesses to rebuild infrastructure affected by the flood. He said the current account will remain in surplus this year (two to three per cent) and the Ringgit will likely bounce back to its previous level when the economy recovers.