The Malaysian economy continued to be strong in the first quarter of 2017, beating expectations and surprising a lot of people.
Economists and analysts said the country’s economy will continue to be solid in 2017.
The economy grew 5.6 percent in the first quarter of this year compared to 4.5 percent in the same quarter a year ago.
This has surprised many economists who expect it to grow at between 4.4 percent and 4.8 percent.
Why is the economy strong? What are the factors?
How will it affect the rakyat?
Let us take a look.
Economy is strong thanks to the government’s efforts
Our economy is strong thanks to the right measures taken by the government.
Under the leadership of Datuk Seri Najib Razak, the government continues to carry out the right initiatives to stimulate the economy.
This include Bantuan Rakyat 1Malaysia, building the mass rapid transit (MRT) and making it easier for both local and foreign businessmen to do business.
All these activities will spur the rakyat to spend because spending is an economic activity.
Spending inside the country can help protect our economy from becoming weak.
So thanks to the government, the right measures have helped our economy to become strong.
The economy is strong led by the manufacturing and services sector
Our economy continue to be strong due to the strong manufacturing and services sector.
What this means is that, the manufacturing sector such as the electrical and electronics sector continues to receive strong demand from all over the world.
Smart TVs, computers, laptops and airconditioners are exported all over the world as well as in Malaysia.
As a result, the strong demand in the manufacturing sector continue to support the economy and able to provide jobs for the rakyat.
World economy getting better
In a briefing to the media on May 16, Bank Negara Malaysia governor Datuk Seri Muhammad Ibrahim said Malaysia is on the right track to register further growth this year.
This is due to strong exports all over the world and the Malaysian economy is expected to expand further.
He added Malaysia is already on the right track to register stronger growth this year and the economy will continue to grow and expand.
Businesses in Malaysia continue to invest
One of the reasons why our economy is strong is because our business community continue to invest.
Businessmen in Ipoh and Johor Bahru continue to open new branches and this will boost business activities in the country.
As an example, Coca Cola announced that it will invest another RM500 million to open a new factory to produce more drinks in Nilai, Negeri Sembilan.
All this spending in the country is called private investment which grew 8.6 percent in the first quarter of this year.
When the business is bigger, the rakyat will continue to spend and this will help support the economy.
Agriculture sector also improved
The economy also grew thanks to the agriculture sector which turned around for the better.
Palm oil and rubber made higher profits due to higher prices.
As a result, the sector grew 8.6 percent and is able to help smallholders earn an income and provide for their families.
The agriculture sector is expected to become stronger in 2017 due to stronger prices of palm oil and rubber and this will help our economy in 2017.
The ringgit is already becoming stronger
The ringgit is already getting stronger due to the strong economic fundamentals of the country.
In a New Straits Times report on May 26, Bank Negara governor Datuk Seri Muhammad Ibrahim said the ringgit is strong due to the firm economic fundamentals of the country.
International cash reserves had also expanded to US$96.1 billion (RM411 billion) as at the end of last month.
All this will help support our economy against a weak economy in the world.
Economy is strong due to the solid bond market
Malaysia’s economy is strong due to the firm bond market.
Bonds is when investors invest their money into our country to be invested in many government projects such as build roads and and schools.
Due to the strong bond market, there is enough liquidity in the market – both in the central bank and the banking system.
What this means is that there is plenty of cash in our financial system and this will make our economy strong as it will encourage the rakyat to spend which will support the domestic economy.
Thank you to the rakyat
Our economy will not be strong if the rakyat does not spend.
The Malaysian economy can collapse if the rakyat does not spend because going shopping and having dinner with your family will create economic activity.
And the country’s economy can only be supported if the rakyat spends their money.
Thank you rakyat Malaysia. Please continue to spend to help support the economy.