ID :
170746
Fri, 03/25/2011 - 10:10
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Shortlink :
https://oananews.org//node/170746
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M'SIA PUSHING FOR RELIANCE ON SERVICES & CONSTRUCTION, SAYS PM
By Yong Soo Heong
KUALA LUMPUR, March 25 (Bernama) -- Malaysia is now pushing for greater reliance on the services and construction sectors as the next engine of growth in anticipation of moderate growth in the United States and Europe, says Prime Minister Najib Razak.
"A slower growth in the US will affect our manufacturing demand, so we have to rely on the services sector and construction as the next engine of growth.
"That is why we are pushing the ETP (Economic Transformation Programme) projects like the Mass Rapid Transit (MRT) so that once the tenders come out, people will have jobs," he said in a recent interview published in the latest issue of the Malaysian Business magazine.
Najib said when he took office in 2009, the biggest challenge was to get the country out of a recession.
The government, he said, had done this in a very robust way and this was supported by a strong and resilient banking system.
"This is because we took the bold step of arriving at a seven per cent GDP (Gross Domestic Product) growth via a stimulus package. This was one of the highest in the world in terms of GDP," he said.
Asked whether Malaysia, as a net oil exporter, benefited from the current higher oil prices, Najib said it did as the revenue of Petronas, the national oil corporation, also increased.
"There is a slight benefit for each dollar increase but this will create a bigger amount for subsidies going for consumption purposes. However, we should use the oil revenue for productive investment that would create growth for the country.
"Basic economics dictate that if you use depleting resources for
consumption, the day of reckoning will come and one day we will not have that luxury. While Malaysia still has oil in the ground, we plan to use it for productive investments and create more wealth for the country.
"Some people don't understand this. They take the simplistic argument that we are an oil producing country; therefore if oil prices go up we can continue the subsidy. However, they forget the fact that oil is a finite resource," he added.
Asked to comment on concerns that a gradual cut in government subsidies would cause an unwarranted increase in prices of some goods, the prime minister said the challenge was to maintain a balance "so that when fuel prices go up, prices of goods do not go up too much and cause undue burden to the people."
Najib said enforcement was being stepped up to ensure retailers did not take advantage of the situation to increase the price of goods by large margins.
"The government continues to identify mechanisms that can be put in place to ensure that only those eligible enjoy the subsidies. We are also mindful of inflation. Economically, a phased cut of various subsidies over a five-year period would not result in inflation going over four per cent per year," he added.
KUALA LUMPUR, March 25 (Bernama) -- Malaysia is now pushing for greater reliance on the services and construction sectors as the next engine of growth in anticipation of moderate growth in the United States and Europe, says Prime Minister Najib Razak.
"A slower growth in the US will affect our manufacturing demand, so we have to rely on the services sector and construction as the next engine of growth.
"That is why we are pushing the ETP (Economic Transformation Programme) projects like the Mass Rapid Transit (MRT) so that once the tenders come out, people will have jobs," he said in a recent interview published in the latest issue of the Malaysian Business magazine.
Najib said when he took office in 2009, the biggest challenge was to get the country out of a recession.
The government, he said, had done this in a very robust way and this was supported by a strong and resilient banking system.
"This is because we took the bold step of arriving at a seven per cent GDP (Gross Domestic Product) growth via a stimulus package. This was one of the highest in the world in terms of GDP," he said.
Asked whether Malaysia, as a net oil exporter, benefited from the current higher oil prices, Najib said it did as the revenue of Petronas, the national oil corporation, also increased.
"There is a slight benefit for each dollar increase but this will create a bigger amount for subsidies going for consumption purposes. However, we should use the oil revenue for productive investment that would create growth for the country.
"Basic economics dictate that if you use depleting resources for
consumption, the day of reckoning will come and one day we will not have that luxury. While Malaysia still has oil in the ground, we plan to use it for productive investments and create more wealth for the country.
"Some people don't understand this. They take the simplistic argument that we are an oil producing country; therefore if oil prices go up we can continue the subsidy. However, they forget the fact that oil is a finite resource," he added.
Asked to comment on concerns that a gradual cut in government subsidies would cause an unwarranted increase in prices of some goods, the prime minister said the challenge was to maintain a balance "so that when fuel prices go up, prices of goods do not go up too much and cause undue burden to the people."
Najib said enforcement was being stepped up to ensure retailers did not take advantage of the situation to increase the price of goods by large margins.
"The government continues to identify mechanisms that can be put in place to ensure that only those eligible enjoy the subsidies. We are also mindful of inflation. Economically, a phased cut of various subsidies over a five-year period would not result in inflation going over four per cent per year," he added.
