KUALA LUMPUR: Following are the highlights of the 2017/2018 Economic Report issued by the Finance Ministry in conjunction with the tabling of the 2018 Budget today by Prime Minister Datuk Seri Najib Tun Razak, who is also Finance Minister.
- Malaysian economy to remain resilient in 2018, with real GDP to expand between five per cent and 5.5 per cent (2017: 5.2 per cent and 5.7 per cent), led by domestic demand.
- Private sector expenditure to stay vibrant, expanding by 7.3 per cent (2017: 7.4 per cent) in line with the anticipation of sustained spending in private consumption and investment activities.
- Private consumption to grow 6.8 per cent (2017: 6.9 per cent), supported by higher income with stable labour market conditions, higher exports earning and firmer commodity prices.
- Private investment anticipated to expand 8.9 per cent, accounting for 18.1 pct of GDP (2017: 9.3 pct; 17.5 pct).
- The country’s nominal gross national income (GNI) per capita to increase by 5.1 per cent to RM42,777 in 2018 (2017: RM40,713).
- Inflation to remain benign at between 2.5 per cent and 3.5 per cent; economy to continue operating under full employment.
- Public sector expenditure expected to decline by 0.4 per cent in line with lower capital outlays by public corporations in 2018.
- Public consumption to grow marginally by 1.3 per cent in 2018 (2017: 2.7 pct), in line with government’s effort to reprioritise and rationalise non-critical expenditure.
- Gross national savings (GNS) to grow 6.2 per cent to RM403.6 bln with the share of Gross National Savings to GNI remaining high at 28.7 pct (2017: 9.5 pct; RM380.2 bln; 29.1 pct).
- Savings-investment surplus to remain substantial at RM32.9 billion (2017:RM32.3 bln), providing ample liquidity to finance capital spending.
- Malaysia’s external position forecast to remain favourable in 2018, supported by global growth trade.
- The services sector to grow at 5.8 per cent in 2018, increasing its share to 54.8 per cent of GDP (2017:5.9 pct; 54.5 pct)
- All sub-sectors will continue to expand in 2018 with the manufacturing sector forecast to increase by 5.3 per cent (2017: 5.5 pct)
- Agriculture sector to grow 2.4 per cent in 2018 (2017: 5.6 pct), contributed by both the commodity and non-commodity sub-sectors.
- Production of CPO estimated to increase 2.5 per cent to 20.5 million tonnes (2017: 15.5 pct; 20 mln)
- The construction industry is forecast to grow at 7.5 per cent (2017: 7.6 per cent), supported by ongoing infrastructure projects.
- Gross exports are projected to expand 3.4 per cent to RM948.7 billion in 2018 (2017: RM917.5 bln), led by continued demand for electrical and electronics products and commodities.
- Gross imports to grow 3.5 per cent to RM851.7 billion in 2018 (2017:RM822.9 billion), reflecting steady investment activity.
- Services account’s deficit to widen to RM22.7 billion in 2018 (2017: RM-18.8 bln).
- The wholesale and retail trade; and food & beverages and accommodation to increase 6.1 per cent and 7.2 per cent (2017: 6.5 pct: 7.6 per cent).
- Transport and storage sub-sector to grow 5.8 per cent in 2018 (2017: 6.2 pct), mainly driven by high ridership on rail services.
- Finance and insurance sub-sector to increase 4.4 per cent (2017:4.2 pct), driven by strong financing activities.
- Fiscal deficit to decline further to 2.8 per cent of GDP in 2018 (2017: 3.0 per cent).
- Federal government debt remains sustainable within the prudent limit of 55 per cent of GDP in 2018.
- The current account balance is forecast to register a surplus of RM32.9 billion or 2.3 pct of GNI in 2018 (2017: +RM32.3 billion; 2.5 per cent).
- Malaysia on track to become an advanced and high-income nation by 2020, doubling the size of the economy to RM2 trillion in 2025 and joining the ranks of top 20 countries by 2050.
–Bernama