KUALA LUMPUR: Prime Minister Datuk Seri Najib Razak said the World Bank’s recent prediction for Malaysia’s economic growth of 5.2 per cent, the second upward revision this year, is proof that the government has been doing right for its people.
Despite the oil price shock and recessions that hit much of Europe, almost destroying some countries, Malaysia’s economy had seen healthy growth, Najib said in his 80-point economic vision for Malaysia ahead of 2018 Budget today.
Since taking office as Prime Minister in 2009, he has come up with the Economic Transformation Programme (ETP), which has delivered on its promises and continues to deliver for the benefit of the rakyat.
Najib recalled that the economic challenges Malaysia faced were enormous then.
“When I took office that April, we were right in the middle of the great global recession, the worst since the 1930s.
“Being an open economy and dependent on international trade, Malaysia was severely affected. Our exports dropped 20 per cent while our economy contracted sharply by 6.2 per cent in the first quarter of 2009.”
Between 2009 and 2016, the country's gross national income had increased by nearly 50 per cent, with 2.26 million jobs created.
“We have narrowed the gap towards the high income target from 33 per cent to 19 per cent. Out of the 2.26 million jobs which have been created in the last seven years, more than one million are high income jobs. Inflation and unemployment have also been kept low.”
He also highlighted that this March, Malaysia’s exports had reached RM82.63 billion.
“It is the highest monthly figure for Malaysian exports ever recorded.”
Due to a policy of engagement abroad, Najib, who is also Finance Minister, noted that the government had attracted unprecedented levels of foreign direct investment, reflceting the confidence the world has in Malaysia.
“This year alone, we have seen 14 business MoUs between Malaysia and China worth RM144 billion, 31 business MoUs between Malaysia and India worth RM158.4 billion, as well as a US$7 billion investment in Malaysia by Saudi Aramco,” he said.
These will follow through to bring about thousands of new jobs, transfers of skills, and improved standards of living for countless families here. Najib highlighted that since 2010, the average Malaysian’s income has increased from RM27,819 to RM40,713, this year.
“Our monthly median income has increased from RM4,585 in 2014 to RM5,288 in 2016. And we have also seen an improvement in B40 household income – which has grown to RM3,000 in 2016 from RM2,629 in 2014,” he said.
As a result, the GINI ratio – which measures income equality – dropped from 0.441 in 2009 to 0.399 last year, the lowest in Malaysia's history. “Our income equality has never been better,” Najib said.