New Straits Times

‘2019 Budget to be exceptiona­lly important’

- Zarina Zakariah and Nurhayati Abllah

KUALA LUMPUR: The upcoming Budget 2019 is exceptiona­lly important to provide clarity and direction for the country, said the World Bank’s lead economist for Malaysia, Richard Record.

“Budgets are always important, but this one is even more, as it will be an important opportunit­y to set the tone for the next fiscal year and the years beyond.

“It’s important how the government will balance between the challenges of fiscal consolidat­ion, growth and debt.

“This is the chance to send signal to investors and private investors on reform and growth opportunit­ies that Malaysia has to offer,” said Record at the East Asia and Pacific Economic Update event, here, yesterday.

He said Malaysia should diversify its economy to have different sources of growth.

As a highly open economy, Malaysia would continue to face substantia­l risks relating to uncertaint­y in the external environmen­t, he added.

“Heightened financial market volatility, triggered by shifting monetary policy expectatio­ns in advanced economies or crisis in other regions could spread across emerging economies, including Malaysia, through capital outflows and pressures on the exchange rates.

“Another key risk relates to the escalation in protection­ist tendencies and trade tensions in some economies, which could have an adverse impact on Malaysia, given its high level of integratio­n with global markets and dependence on global value chains.”

 ?? PIC BY SALHANI IBRAHIM ?? World Bank’s lead economist for Malaysia Richard Record (right) says Malaysia needs to diversify its economy to have different sources of growth at the East Asia and Pacific Economic Update in Kuala Lumpur yesterday.
PIC BY SALHANI IBRAHIM World Bank’s lead economist for Malaysia Richard Record (right) says Malaysia needs to diversify its economy to have different sources of growth at the East Asia and Pacific Economic Update in Kuala Lumpur yesterday.

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