Malaysia’s growth can exceed govt target, World Bank says

KUALA LUMPUR: Malaysia’s economy can expand faster than targeted if private investment increases, a World Bank economist said yesterday.

The country’s Economic Planning Unit estimates Malaysia’s gross domestic product (GDP) needs to grow 5.4% a year over the next decade to achieve developed nation status by 2020, Bernama reported on Nov 11.

“The growth rate can be higher than that if private-sector investment can be revitalised,” Philip Schellekens, senior economist at the East Asia and Pacific department of the World Bank, said here. “I think it’s realistic, providing the government can pull off the various initiatives that have been announced on revitalising the Malaysian economy.”

Prime Minister Datuk Seri Najib Razak has eased rules governing overseas investors, initial public offerings and property purchases in a bid to lure more foreign money. Private investment in Malaysia “never recovered” after the Asian financial crisis a decade ago, Schellekens said.

Najib said on Oct 23 that Malaysia’s US$195 billion (RM655.2 billion) economy may shrink 3% this year, less than an earlier forecast for a contraction of 4% to 5%. It will release its third-quarter growth figure on Friday.