Despite bouts of economic hardships, Malaysia’s resilience has been proven in the past following robust reform agenda which not only led to a more diversified economic structure but also robust financial system. After facing two major crises in the last two decades, namely the Asian Financial Crisis in 1997/1998 and Global Financial Crisis in 2008/2009, which saw Malaysia’s GDP growth contracted by 7.4% and 1.5% respectively, the domestic economy rebounded strongly to record positive growths of 6.1% in 1999 and 7.5% in 2010.
As we embark on becoming a high-income nation, the government devises the country’s economic policies such that productivity growth will be diversified across sectors so that we will not fully rely on any particular sector in growing the economy. As it stands, the services sector contributes 54.5% to our GDP, manufacturing 23%, mining 8.4%, agriculture 8.1%, and construction 4.6%.
The government will continue to embark on high-impact infrastructure projects mainly for its high-multiplier impact to the regional development. For example, on-going domestic infrastructure projects such as MRT, LRT, HSR and Pan-Borneo Highway, will not only create the impetus to stimulate economic activities in those participating areas, but also bridging the gap through reducing regional differences.
As Malaysia moves up the value chain, investors from the UK have been at the forefront of this journey with us. The investment, training and technologies brought in by UK investors are key assets as Malaysia strives towards implementing our key national development programs – the National Transformation Program (NTP), the National Productivity Blueprint, and now the forward-thinking TN50 developmental framework.
The government’s shift in emphasis away from blanket subsidies and towards targeted social assistance programs has been a significant step forward, with the efficiency of this approach being highly supported by international evidence.
As an outward-looking trading nation, Malaysia welcomes the opportunity to have a closer economic partnership with the UK, as it finalizes its position in the European Union (EU). I am convinced that a mutually beneficial bilateral partnership will open up many doors for our businesses and our people.
8 February 2018 : British Malaysian Chamber Of Commerce (BMCC) Economic Outlook 2018, Ritz Carlton, Kuala Lumpur