Economic performance can’t be fully assessed yet
Deputy Minister says data only cover up to first quarter of 2018
KUALA LUMPUR: Malaysia’s economic performance after the 14th General Election (GE14) cannot be fully assessed based on the current economic data, says Deputy Economic Affairs Minister Dr Mohd Radzi Md Jidin.
He said the available economic data only covered up to the first quarter of 2018, with the short-term economic indicators covering only up to May.
He was replying to an oral question from Sabak Bernam MP Datuk Mohd Fasiah Mohd Fakeh at the Dewan Rakyat yesterday on the economic performance post-GE14.
Mohd Radzi said foreign direct investment (FDI) last year totalled RM41bil, while in the first quarter of this year it amounted to RM12bil, up from RM3.4bil in the fourth quarter of 2017.
The FDI for the second quarter of 2018 would be published on Aug 17, he noted.
“Despite the macroeconomic data showing the country’s economy in a strong position, the main economic indicators reflect a different scenario and need attention.
“There were still growth disparities among states, gaps between income groups particularly the lowest 40% income group or B40, high youth unemployment and rising costs of living,” he said.
Mohd Radzi said the latest financial indicators still pointed to capital outflows since last year, driven by such factors as loose monetary policy by the US, which has raised interest rates, and the trade tensions between the US and China.
The new government has taken several measures including strengthening the nation’s economic and financial situation, stopping non-transparent financial practices and financial mismanagement, as well as reviewing development projects especially those that are not transparent and sustainable, he said.
Although economic growth is expected to be affected by policy reforms and investors’ cautious attitude, the impact is likely to be temporary and the situation would return to normal soon, he added.
Institutional reforms would give confidence to foreign investors that the country is moving from the old model to one that is more transparent, comprehensive and inclusive, and would retain the existing FDI besides attracting new investors, he said. — Bernama