Sabah economy expected to grow 4-4.5% next year – CM
KOTA KINABALU: Sabah’s economy is expected to grow 4 percent to 4.5 percent next year, said Chief Minister Datuk Seri Panglima Musa Aman.
He said the forecast was based on current economic scenario and environment, with continuous strong support from the Federal Government and brighter global economic prospects as well as expected recovery in commodity prices next year coupled with a vibrant tourism sector in 2017.
Musa, who is also the Finance Minister, said the Malaysian economy grew by 4.1 percent in the first half of 2016, sustained by strong domestic demand primarily from the private sector.
For the whole of 2016, the country’s economy is expected to grow between 4 to 4.5 percent and improve further to between 4 to 5 percent in 2017.
Malaysia’s fiscal deficit is expected to shrink from 3.1 percent of Gross Domestic Product (GDP) in 2016 to 3 percent in 2017. Under these circumstances, Gross National Income (GNI) per capita is forecast to grow at 5 percent to RM39,699 in 2017 from RM37, 812 in 2016.
The growth of the world economy is forecast to experience a slight decline from 3.2 percent in 2015 to 3.1 percent in 2016 before picking up in 2017 to reach 3.4 percent.
“Within the context of the State’s economic development, next year’s economic growth momentum is projected to remain stable following moderate global economic growth. Sustainable economic growth is envisaged to be fuelled by vigorous exports activities, domestic investment, public expenditure and the tourism sector,” said Musa when tabling the State Budget 2017 at the State Assembly sitting here yesterday.
He said in the first six months of this year, the State registered a positive trade balance of RM4.9 billion. He said cumulative realised investment under the Sabah Development Corridor (SDC) had increased and reached RM57 billion as compared to RM53.8 billion registered during the same period in 2015.
“Investment in the private sector is expected to increase with the implementation of high impact projects such as Aeropod, Sabah International Convention Centre (SICC), Grand Merdeka Mall, Maya @ Likas, PacifiCity Mall, Sutera Avenue, Harbour City, Jesselton Quay (including International Cruise Terminal), Kota Kinabalu City Waterfront, Jesselton Residences, Hilton Hotel, Mercure Hotel and Marriot Hotel.”
“As at 30 June 2016, statistics indicated that commercial loans approval to the Wholesale & Retail Trade and Restaurants & Hotels sector reached RM5.1 billion. At the same time, commercial loans approval to the Finance, Insurance, Real Estate and Business Services recorded an increase of 18 percent worth RM3.9 billion,” he added.