KUALA LUMPUR: The Malaysian economy is expected to expand between 4 and 4.5 per cent this year, thanks strong economic fundamentals, efficient management of fiscal policies supported by the implementation of the Goods and Services Tax (GST).
In his opening address at the fourth session of the 13th parliament sitting here today, Yang di-Pertuan Agong Tuanku Abdul Halim Mu'adzam Shah said global economic and political uncertainties especially the fall in oil and commodity prices had affected national revenue and the Ringgit.
"However, with strong economic fundamentals, efficient management of fiscal policies supported by the implementation of the GST starting April last year, the country's economy continued to expand at the rate of 5 per cent last year.
"The economy is expected to expand between 4 and 4.5 per cent this year," he said.
He said the government will continue to pay attention to enhancing economic foundations to further strengthen the country's resilience.
The King also noted that the dependency on oil and gas revenue has been reduced to 21 per cent compared to more than 40 per cent in 2009.
"The allocation of the RM20 billion facilitation fund is expected to encourage investments and the implementation of large-scale and high impact private sector projects," he added.
He said Malaysia's move to join the Trans-Pacific Partnership (TPP) will provide a broader market in 12 countries for the business community, with an estimated gross domestic product over USD27 trillion.
"The government will always defend the interests of our country, including the Bumiputera economic development agenda in any trade negotiations including TPPA," he said.