|
3rd July, 2009
KUALA LUMPUR: Malaysia’s economic growth in 2009 will be driven mainly by the services and manufacturing sectors.
Domestic demand is expected to assume a greater role in driving this growth due to weak external demand, the Ministry of International Trade and Industry (MITI) said in its 2008 Annual Report released here yesterday.
The country’s economy is expected to contract between -4.0 per cent and 5.0 per cent this year.
To stimulate economic growth, concerted efforts in productivity and quality enhancement need to be put in place, MITI said.
MITI also said these initiatives would involve integrating work processes, utilising higher technology, improving management systems, strengthening human resource capabilities while nurturing creativity and innovation at all levels.
According to MITI, with productivity initiatives being undertaken to minimise the impact of the global economic slowdown, the economy is projected to achieve a productivity growth of more than one per cent.
The services sector, comprising the trade, transport and finance sub-sectors, is expected to achieve a productivity growth of 2.8 per cent and the finance sector is projected to grow more than three per cent.
MITI in its report also stated that the transport and trade sectors are expected to enjoy a productivity growth by more than 2.5 per cent and 2.0 per cent, respectively.
MITI said the growth would be supported by household spending and an improvement in the tourism sector.
The sector would also benefit from an increase in the use of information and communication technology (ICT) and Islamic finance, it highlighted.
The report also indicated that the manufacturing sector productivity is expected to achieve a lower growth of 0.5 per cent due to a softening of the external sector, with demand for electrical and electronic products having weakened.
Other industries expected to achieve growth are food and beverages, non-metallic mineral products, iron and steel, transport equipment and machinery and equipment.
MITI said that in 2008, the economy registered a productivity growth of 2.9 per cent, raising the productivity level to RM49,526. The growth was driven by strong domestic consumption following the government’s proactive approaches to stimulate economic growth.
Under the Ninth Malaysia Plan (2006-2010), the economy is targeted to achieve total factor productivity (TFP) growth of 2.2 per cent and contribute 35.8 per cent to output growth by 2010.
|
