‘MALAYSIA DOESN’T NEED STIMULUS PACKAGE’
‘Sensible’ approaches in 2020 Budget likely sufficient to support economy
MALAYSIA does not need any stimulus package for the time being as the government is managing the economy prudently, said HSBC Malaysia chief executive officer Stuart Milne.
He said the 2020 Budget was likely sufficient to support the economy, with “sensible” approaches being made by the government.
“When you invest money, you have to make sure you can afford to spend the money. The government is careful to ensure that it can afford to do so while trying to protect its international debt rating,” said Milne at a press conference after announcing the results of HSBC’s global survey, “Navigator: Now, next and how”, here, yesterday.
“The 2020 Budget is sensible and the (country’s) debt rating is also important in accessing the capital market.”
Milne said Malaysia was an important and strategic market for HSBC and it had been investing to add more customers and grow its business in the country.
“We forecast a 4.1 per cent gross domestic product growth for Malaysia next year. This is a good range as other countries are only recording lower single-digit growth.
“Malaysia is generating a consistent growth of about four per cent, which is quite positive despite the headwinds around trade and protectionism,” he added.
Meanwhile, Malaysian businesses are optimistic about their growth prospects despite ongoing geopolitical developments reshaping global supply chains.
HSBC’s survey revealed that local businesses’ optimism had strengthened over the past 12 months.
More than 9,100 firms across 35 global markets, including more than 200 in Malaysia, participated in the survey.
It said more than four in five (81 per cent) of Malaysian businesses expected their sales to grow over the next year, ahead of peers globally and in Asia at 79 and 77 per cent, respectively.
The survey also showed business growth in the near term was expected to be driven by improving productivity, more investment in technology and foray into new markets.