The Malaysian economy registered a gross domestic product (GDP) growth of 6.2 percent in the third quarter.The ringgit meanwhile strengthened to RM4.12 to the US dollar.
This indicates that the worst could be over and our economy is getting better.
Let us take a look at how it will impact the rakyat.
Malaysian economy improving
Bank Negara Malaysia Governor Tan Sri Muhammad Ibrahim said the GDP growth of 6.2 percent is the best GDPgrowth since 2014.
This shows productivitiy is getting better, salaries are getting higher and exports are doing well.
It is also a sign that the worst may be over and the economy has nowhere to go but up.
This is good news for the rakyat as they can have a better living standards.
Ringgit gettting stronger
The ringgit also gained a lot to RM4.12 to the US dollar compared to RM4.42 in October 2016.
DBS foreign exchange strategist Philip Wee said this is due to the strong GDP growth as well as a weak US dollar.
The strong ringgit is a good indicator as it signals the growing confidence of international investors in Malaysia.
With growing confidence, investors will come to Malaysia and invest and this will provide jobs for the rakyat.
Our GDP growth among highest in Asia
Malaysia’s GDP growth is among the highest in Asia and even the world.
Minister in the Prime Minister’s Department Datuk Seri Abdul Rahman Dahlan said the country’s GDP is higher than Singapore, Indonesia, South Korea and Taiwan.
Credit must be given to the government for steering the economy in the right direction as well as the rakyat for their hard work.
Economy strong due to good Budget 2018
OCBC Bank economist Barnabas Gan said the economy continues to be resilient partly due to Budget 2018.
This is due to the government’s move to reduce income tax and give bonus to 1.6 million civil servants.
The move has given more money to the rakyat to spend.
And the spending has contributed to a strong Malaysian economy.
Economy solid due to shrinking foreign debts
The economy is solid as our foreign debt is shrinking a bit to RM873.8 billion as at end September compared to RM877.5 billion as at end June 2017.
Bank Negara Malaysia said due to the bank’s discipline in paying the loan on time as well as the strengthening ringgit has enabled it to gradually pay off the foreign debt.
This financial discipline has also contributed to the strong GDP growth as well as emit a positive sentiment to the investors.
Business in Malaysia continue to be robust
Minister in the Prime Minister’s Department Datuk Seri Abdul Rahman Dahlan said private consumption or domestic business activities climbed 7.2 percent, the highest since 2015.
Domestic investment meanwhile went up to 7.9 percent.
What it means is that despite the challenging economy, businesses in Malaysia continue to thrive.
Datuk Seri Abdul Rahman said the economy is strong thanks to the business activities in Malaysia.
These activities continue to support and sustain the economy.
Exports grew 11.8 percent
Malaysian economy is strong due to strong demand for its products such as palm oil, washing machines, semiconductors and petrochemicals.
That is why exports grew 11.8 percent from 9.6 percent which provided the rakyat with jobs and have a sustainable income.
The strong exports will ensure that the Malaysian economy remain on track for the benefit of the rakyat.
Services sector also grew 6.6 percent
The Malaysian services sector also grew 6.6 percent from 6.3 percent in the second quarter.
Services sector include the hotel industry, medical tourism and logistics sector.
What this means is that tourists continue to come and use our facilities.
This include staying at hotels such as by international atheletes during the Kuala Lumpur Sea Games.
As a result, our services sector grew.
This bodes well for our rakyat providing them jobs and income.
Megaprojects continue to spur growth.
Construction projects will always boost the economy and that is why the government has embarked on such projects to sustain the economy.
IHS Markit chief economist Rajiv Biswas told the New Straits Times on October 17 that part of the country’s strong economy is contributed by Petronas Rapid petrochemicals project.
Other projetcs include infrastructure jobs such as the Pan Borneo Highway, MRT Line Two, MRT Line Three and the East Coast Rail Link.
All this projects will spillover to the Malaysian economy.
Government doing the right thing
The strong economic performance show that the government is doing the right thing.
Datuk Seri Abdul Rahman Dahlan said the strong economic growth is proof that the economy is in the right direction.
The initiatives led by Prime Minister Datuk Seri Najib Razak is also endorsed by international organisations.
This include the World Bank, International Monetary Fund and the Asian Development Bank.
Solid economic growth will sustain the creation of more jobs, increase the people’s income and improve their well being and quality of life.
Full year 2017 growth revised upwards
Due to the stronger than expected third quarter growth, Malaysia’s full year 2017 growth is also expected to be stellar.
RAM Holdings econmist Kristina Fong said 2017 GDP is expected to register 5.8 percent than earlier forecast of 5.2 percent.
UOB Bank Julia Goh also expects the country’s economy for the full year 2017 to climb higher to 5.8 percent from earlier estimates of 5.2 percent.
All this is positive news for the country and the rakyat.