MALAYSIA is expected to achieve a stronger and more sustainable gross domestic product (GDP) growth of 4.8% next year on the back of strong macroeconomic fundamentals, said Economic Affairs Minister Mohamed Azmin Ali.

He said Malaysia’s highly-diversified economic and export structure, supportive labour market, low and stable inflation, a strong and well-capitalised financial sector and a healthy current account surplus on the balance of payments would continue to drive the economy going forward.

“This outlook is higher than the estimates by the International Monetary Fund at 4.4% and the World Bank at 4.5% as the government remains committed to implementing its development priorities.

“For 2020, RM56 billion has been allocated for 5,466 development projects in order to support the growth momentum and strengthen the country’s long-term economic capacity. Of this amount, RM53.2 billion is allocated for 4,744 ongoing projects and the remaining amount of RM2.8 billion has been set aside for 722 new projects,” he said.

Over the next decade, he said, the government would emphasise restructuring the economy by developing new economic areas and creating business opportunities and high-paying jobs, in line with the Shared Prosperity Vision 2030.

He said this entails ensuring an inclusive, sustainable and meaningful socio-economic development to provide a decent standard of living for all Malaysians, which would be operationalised through the 12th Malaysia Plan 2021-2025 and the 13th Malaysia Plan 2026-2030.

Azmin said the government remains vigilant and would continue to focus on strengthening Malaysia’s near-term resilience and advancing structural reforms to raise medium-term growth.

“Hence, the country’s growth potential will be optimised by strengthening productivity and innovation as catalysts of growth, whereby emphasis will be placed on empowering the manufacturing sector to produce more high quality, diverse and complex products

“In this regard, focus will be given to strengthen sectors with high growth potential, such as aerospace, medical devices, electrical and electronics, machinery and equipment as well as chemicals and chemical products,” he said.

He said the development and modernisation of resource-based industries through research, development, commercialisation and innovation would also be given priority.

He said the government will increase its efforts in building up resilience and boosting endogenous sources of growth as domestic demand will remain the key driver of growth for 2020, underpinned by the continued expansion in private sector activity. – Bernama