M’sia heading in the right direction – PM

KUALA LUMPUR: Malaysia is heading in the right direction as attested by the International Monetary Fund’s (IMF) report on the country’s real gross domestic product (GDP) growth projection for 2017, Datuk Seri Najib Tun Razak said.

The Prime Minister was referring to a recent IMF report which stated that Malaysia’s real GDP growth has surprised on the upside and is projected at 5.5–6.0 percent for 2017, driven by domestic demand and robust exports.

“Proof that we are heading in the right direction,” Najib said in his Twitter post.

IMF stated that the authorities’ comprehensive structural reform agenda, laid out in the 11th Malaysia Plan, which focused on supporting higher productivity and improving labour market outcomes, would help boost medium-term growth and improve living standards.

“Priority should be given to policies to encourage female labour market participation and reduce skill mismatches,” it said.

IMF team, led by Nada Choueiri, visited Kuala Lumpur and Putrajaya from Nov 28 until Dec 8 2017 to conduct discussions for the 2018 Article IV Consultation with Malaysia.

The team exchanged views with senior government and Bank Negara Malaysia (BNM) officials and met with representatives from the private sector and think tanks.

In a statement after the conclusion of the visit, Choueiri stated that the Malaysian economy has shown resilience in recent years and continues to perform well.

“However, core inflation and credit growth are contained. Headline consumer price inflation has gone up on higher oil prices, and is projected at close to four per cent for 2017. On the external side, the current account balance surplus has increased, helped by strong exports,” Choueiri said. — Bernama