Malaysia's Growth Is Still Healthy, Says PM Najib

KUALA LUMPUR, Aug 20 (Bernama) -- Malaysia's growth is still healthy and far above the global average, says Prime Minister Najib Razak. Citing credit ratings agency, FitchRatings, which has maintained the country's 'A-' rating with stable outlook, the prime minister said it is a reflection of the country's strong economic fundamentals. "Headline inflation has been kept low, and despite challenging global headwinds. "But, there is still plenty to do to achieve our 2020 goals," he (centre in the picture) said at the Khazanah 10th Year Anniversary Dinner here Friday. Programmes at the dinner were delayed to view the "live" telecast of the match between Malaysian shuttler Lee Chong Wei and arch-rival Lin Dan of China, in the men's singles semi-final competition from Rio de Janeiro. Najib said the transformation undertaken by Yayasan Khazanah (Khazanah Foundation) scholars, mirrors in some ways, the national transformation that has been put in place for Malaysia. "Our New Economic Model is of a country that is more competitive, productive and investor friendly. "Under the National Transformation Programme or NTP, the Economic Transformation Programme, works towards Malaysia reaching high-income status by 2020. "The emphasis of the Government Transformation Programme is on improving delivery and ensuring we put the people's needs first. We have taken bold, innovative steps. "Some, like the rationalisation and removal of subsidies and introduction of the Goods and Service Tax were not popular, but necessary," he added. Najib, who is also Finance Minister, said government initiatives which have been targeting all parts of society, are now seeing results. He said the bottom 40 per cent households income had experienced a compound annual growth rate of 12 per cent. The Bantuan Rakyat 1Malaysia (1Malaysia Peoples Aid) payments, he added, had not only benefitted those who received it, but also had a beneficial effect on the economy due to the multiplier effect. "I am pleased to note that a group of 35 leading British economists recently wrote an open letter in a British newspaper, in which they declared that this payment model was a far better way to stimulate growth than interest rate cuts," he said. Najib said much has been achieved in the last few years. "Since the National Transformation Programme was launched in 2010, Gross National Income increased by nearly 50 per cent, and 1.8 million new jobs created. "The annual labour productivity growth rate under the 10th Malaysia Plan, from 2011 to 2015 was 2.3 per cent. But we want to do even better, and the target under the 11th Malaysia Plan from 2016 to 2020, is 3.7 per cent," he added. (photoBERNAMA) --BERNAMA