‘Rebasing does not change GDP projection for 2019’

The gross domestic product (GDP) for 2019 is maintained at a moderate level as projected despite the rebasing of data from base year 2010 to 2015.

Chief Statistician, Department of Statistics Malaysia (DOSM), Datuk Seri Dr. Mohd Uzir Mahidin, said normally the level of the economy is determined based on component indicators and not the base year.

“When we make the projection, it does not use a specific year but based only components, among them money supply, import and export value, and registration of new companies, in determining the state of the nation’s economy,” he said yesterday.

Speaking to reporters after presenting Malaysia GDP Base Year 2015 here, he said the economic growth in 2015 and 2018 were still stable even though the rebasing exercise of the base year was implemented, except for 2016 and 2017 which saw slight changes.

Earlier, Bank Negara Malaysia has projected the country’s GDP growth at between 4.3 per cent and 4.8 per cent in 2019.

Meanwhile, Mohd Uzir said the GDP numbers for the first quarter of 2019, which will be announced by Bank Negara on May 16, was also expected to record a slower growth.

“The DOSM and Bank Negara are currently reviewing the sectors and indicators that we have collated ... and among the related indicators, export and import data recorded slight a decline while other indicators are still in the process.

“We will view the sectors relating to mining, manufacturing, and services, following the Industrial Production Index released in January and February 2019 showed a moderate increase compared with 2018,” he said.

Several analysts also reported that Malaysia’s economy was expected to post less encouraging growth in the first quarter of 2019 because of uncertainty surrounding the trade negotiations between the United States and China.

Mohd Uzir also said the secondquarter 2019 GDP would see a recovery in growth following the reinforcement in terms of investments flowing into the country.

“I am confident Malaysia’s GDP growth level will continue... as to-date, we find the current economic expansion is continuing its momentum,” he said. — Bernama

When we make the projection, it does not use a specific year but based only components, among them money supply, import and export value, and registration of new companies, in determining the state of the nation’s economy Datuk Seri Dr. Mohd Uzir Mahidin