M'SIA MUST MOVE TOWARDS HIGH QUALITY ECONOMIC GROWTH

KUALA LUMPUR, Nov 19 (Bernama) -- Malaysia must move towards high quality
economic growth based on productivity, technology, innovation and creativity to
become a high income economy among developed countries.

Minister in the Prime Minister's Department, Nor Mohamed Yakcop said in a
challenging environment, productivity was important for achieving Vision 2020 as
well as to form a new economy.

"We must improve productivity as without doing this,we cannot achieve our
vision," he said after officiating the PTD Alumni Economic Forum 2009 on the
10th Malaysian Plan, themed, A New Paradigm--Overcoming Challenges here
Thursday.

To become a developed nation, Malaysia needs to increase the per capita
income to US$12,000 from the US$7,000 at present.

"Malaysia will achieve the status of a developed nation at the end of the
11th Malaysia Plan, that is in 2020," he said.

He added that the country should not continue to be trapped by the medium
income status forever.

"We must open up as much as we can and explore ways to achieve the status of
a high income country.

"At the same time, economic growth must also be spearheaded by a more
dynamic private sector, especially in new areas. We need to reasses policies
which are less condusive to encouraging a more dynamic private sector," Nor
Mohamed said.

In 1997, private investment contributed to 32 per cent of the country's
gross domestic product (GDP).

Since the Asian economic crisis, its contribution has declined significantly
to less than 10 per cent, among the lowest in this region.

According to Nor Mohamed,the country's successful development formula over
the past 50 years can no longer guarantee economic excellence in future.

"The new economic model will take into consideration the global environment
which has become more competitive as well as identify and grab opportunties on
the global arena," he said.
-- BERNAMA