CYBERJAYA: The Malaysian economy may be able to grow five per cent or more this year, says Treasury Secretary-General Tan Sri Dr Mohd Irwan Serigar Abdullah.
Based on the country’s first performance in the first half of this year, Irwan said the target is achievable on better economic performance, strengthening of the export numbers, more investments and job creation as well as more stable crude oil prices.
"The country's economy is performing well, and I personally think we can achieve five per cent or more in real gross domestic product growth.
"We also see the oil price stabilising at between US$47 and US$50 per barrel, and I think the ringgit will be getting better," he said after launching Malaysian Global Innovation & Creativity Centre's Global Accelerator Programme here yesterday.
He was commenting on a recent Bloomberg’s report on the ringgit, which said it was the most stable major Asian currency during the second quarter of the year.
Irwan said the government will be meeting with the Economic Planning Unit and Bank Negara Malaysia on whether there was a need to revise the GDP forecast for Budget 2018, which is scheduled to be tabled on October 27.
Bank Negara had forecast a GDP growth of between 4.3 per cent and 4.8 per cent this year.
The local economy grew 5.6 per cent in the first quarter of this year, driven by strong domestic demand and consumer spending.
Irwan, who is also MaGIC chairman, refuted claims that Malaysia's economy was “doom and gloom” and that the economic slowdown was due to the volatility in oil price and global market sentiments.
Meanwhile, MIDF Research revised iys GDP growth forecast for Malaysia to 5.1 per cent this year, from 4.9 per cent previously, on the back of a strong trade performance in the first four months.
"Strong trade performances from January to April give reasons to believe that the uptrend in global trade activity could sustain for the year," the research house said in a report yesterday.
"The windfall from surging trade is a boon, especially for exports-oriented industries, i.e. electrical and electronics, chemicals, petroleum products and palm oil," it said.
As such, MIDF Research believes there will be a positive trickle-down effect to domestic economic activities via output production, investment, employment, income and consumption.