Despite all the problems and challenges, the Malaysian economy is actually getting better and getting stronger.
Finance Ministry secretary general Tan Sri Dr Mohd Irwan Serigar Abdullah said on July 5 that the economy this year is expected to grow more than 5 percent this year.
This is unexpected as the economy conditions around the world is tough.
But yet Malaysia’s economy is getting stronger.
How can Malaysia achieve that?
Let us take a look as well as how it will benefit the rakyat.
Why is the economy getting better?
The Malaysian economy is getting better due to a combination of many reasons and not just due to one single factor.
The economy is getting firmer due to robust exports, more investments coming in as well as strong investment by the business community within the country as well as strong spending by the rakyat.
When there are many investments, there will be a lot of jobs creation which will be good for the economy.
Economy is doing well due to the government’s good leadership
Prime Minister Datuk Seri Najib Razak said a total of RM17 billion in foreign direct investment is coming into Malaysia.
In his blog on July 3, the Prime Minister said eventhough there are many challenges, Malaysia is able to record many achievements that Malaysia can be proud of.
Even though the global market is uncertain, oil prices are weak and there are actions to sabotage the economy and tarnish the country by the Opposition, the Malaysian economy is doing well.
Najib said Malaysia had received many international recognitions which proved that the policies the government had implemented to continue to strengthen the economy were the right move and bore results.
Economy is doing well because crude oil prices have stabilised
One of the reasons why the Malaysian economy is getting solid is that crude oil prices have stabilised at between US$47 and US$50 per barrel.
This is good news for Malaysia especially for Petronas because at between US$47 and US$50 per barrel, the country will have higher oil sales and higher income.
The oil sales made by Petronas will be given back to the rakyat because Petronas pays royalty to the Government.
The government will then use the money for the rakyat such as buildings affordable homes. roads and schools.
The economy is good due to strong exports
Malaysia’s economy is good as exports grew 32.5 percent in May, the highest monthly growth since March 2010.
The International Trade and Industry Minister said on July 7, this encouraging development is due to strong demand for manufactured goods such as LED televisions as well as palm oil and crude petroleum.
This will be a great boost for our economy which will spill over to the people enabling them to have a better life.
Ringgit also getting stronger
Bloomberg reported on June 29 that the ringgit is the strongest and most stable Asian currency during the second quarter of this year.
This shows that the economy is getting stronger and investors have full faith in our economy.
London-based Pioneeer Investment Management fund manager Hakan Aksoy told Bloomberg that with improving macro-economic conditions in Malaysia, Malaysia’s outlook in 2017 is positive.
Investors like our policies
The Malaysian economy is getting better because foreign investors like our policies.
The World Competitiveness Yearbook 2017 has ranked Malaysia as the 24th most competitive economy in the world.
The World Bank meanwhile has voted Malaysia as the world’s sixth friendliest in the world in ease of doing business.
This shows that Malaysia has a good reputation for having a business friendly environment and a tax competitive system to attract investors to invest and set up factories or regional offices.
Economy only getting better
In its report, MIDF Research said the country’s economy is getting better as strong trade performance between January and April shows that there is an uptrend in global trade activities.
This development is expected to continue for the rest of the year and this can sustain the economy for the near term and will benefit the rakyat as they are able to work and provide for their families.
MIDF said the positive economy will have positive trickle down effects to the rakyat’s activities, boost production, encourage investment activities and increase income.
Malaysia is only getting stronger and international agency PricewaterHouseCoopers has placed Malaysia at the 25th spot among global economic powerhouses with gross domestic product of (GDP) of US$1.5 trillion (RM6.4 trillion) by 2030.