KUALA LUMPUR, Nov 15 — The government will continuously monitor the country’s economic development to ensure that the growth is strong and on the right track, said Economic Affairs Minister Datuk Seri Mohamed Azmin Ali.
This is considering that the country’s economy is still facing uncertain economic and global financial risks, as well as the volatility in the commodity markets.
Nevertheless, the government expects the economic growth target this year of 4.7 per cent could be achievable based on the performance of key economic indicators such as the Leading Index, which showed improving economic growth momentum.
It is also in an expansion phase for the period of four to six months ahead.
Malaysia’s economy in the third quarter of 2019 recorded a growth of 4.4 per cent supported by encouraging domestic activities, especially private consumption, said Mohamed Azmin in a media statement today.
The external sector also remained strong with high net export numbers, which enabled the current account of the balance of payments recording a surplus.
The Purchasing Manager’s Index for the manufacturing sector also increased to 49.3 points in October 2019, its highest level in six months.
Meanwhile, the decision by Bank Negara Malaysia to reduce the statutory reserve requirement by 50 basis points to 3.0 per cent will be effective Nov 16, 2019.
The move taken was to ensure sufficient liquidity in the domestic financial system to support the efficient functioning of the financial markets, subsequently to stimulate economic activities in the country.
Hence, the country’s economic growth will continue to be driven by domestic demand activities which contributed more than 90 per cent to the gross domestic product.
This growth will continue to be propelled by private consumption especially activities related to domestic tourism and year-end sales in conjunction with the school holidays, said Mohamed Azmin.