Feb 8, 2018
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
Jan 18, 2018
“OUR SUCCESS STORY Malaysia has always recognised financial inclusion as a policy priority and continues fostering greater access to address remaining gaps. Today, financial inclusion has become an important global policy agenda to ensure sustainable economic growth. As a country that places immense importance on financial inclusion, Malaysia appreciates that promoting inclusive finance is key towards equitable growth. This in turn helps the nation to achieve its goal of sharing economic prosperities equitably among all citizens. Today, the percentage of banking customers with active deposit accounts, an indication that they are conducting basic financial services regularly, has increased to 92% from 87% in 2011.”
“INTERNET & TECHNOLOGY- NEW ENABLERS OF FINANCIAL INCLUSION AGENDA Currently, there are still 8% of unbanked population in Malaysia and we hope to reduce this to 5% by 2020. According to BNM, adults with no income or low income are less likely to be banked and more than half of the unbanked population are women. Further, it is also observed that youth from age of 15-24 years old are less likely to have a formal account. Premised on this observation, the government remains committed to expand the level of financial inclusion to a new height and we look forward to utilise internet and technology as new enablers, in addition to other existing tools.”
“FINANCIAL INCLUSION – FINANCIAL LITERACY AND FINANCIAL HEALTH In regard to our efforts to advance financial inclusion in Malaysia, the results so far have been really promising. The level of financial inclusion in Malaysia in 2015 based on the Financial Inclusion Index is relatively high at 0.90 with 1.00 reflecting full inclusion. However, there remain areas that we have to focus on and intensify our efforts urgently, namely financial literacy and financial health. These two aspects will ensure that inclusive finance is also increasingly being underpinned by sustainable practices. Today, financial education is increasingly important, and not just for investors, but also for every man on the street, given the growing sophistication of financial markets and the availability of various financial products out there. It is certainly no longer about just choosing between interest rates on two different bank loans or savings plans. It is undeniable that various key agencies including BNM have taken various measures to increase the level of financial literacy among Malaysians.“
Dec 8, 2017
“Having cultivated friendly relations over the years through strengthening security, accelerating infrastructure development, and promoting trade, investment and tourism; Malaysia is poised to be the hub for potential investors to penetrate the ASEAN market due to our strong economic and financial linkages with the regional economies.”
“Taiwan is Malaysia’s 8th largest trading partner and Malaysia is Taiwan’s 2nd largest trading partner in Asean, after Singapore. Malaysia-Taiwan bilateral trade is expected to exceed RM71 billion this year, as Taiwan government’s New Southbound Policy that was introduced last year focuses on strengthening trade, investment, and private sector collaboration with ASEAN countries, South Asia and the Australasia region.”
“ASEAN economic integration is one of the success stories of modern economics. Amid the Asian Financial Crisis in 1997/98, the regional pack was able to bounce back stronger than ever before. ASEAN is also one of the fastest-growing markets with an average growth rate of 5.3% between 2007 and 2015. Based on IMF forecast, the ASEAN bloc is expected to register growth rates of 4.9% and 5.1% in 2017 and 2018 respectively, and sustain around 5.2% until 2020.”
“ASEAN stands out as a dynamic region – with diverse strengths that continues to benefit its growing population of 635 million people. ASEAN has a combined GDP of USD2.43 trillion in 2015 – 7th largest economy in the world and 3rd largest in Asia. ASEAN also contributed to more than 7% of world exports and the region’s growth continues to surpass that of advanced economies. These strong economic performances have enabled better livelihood of households. Millions have been lifted out of poverty with the significant rise of ASEAN’s GDP per capita, from USD1,054 in 1996 to USD4,000 in 2016. Moving forward, the significant rise in middle-income group and a sizable labor force will lead to greater purchasing power in the ASEAN region.”
“Promoting greater economic and financial integration beyond ASEAN for greater market access and more efficient resource allocation would be a true game changer. ASEAN integration has allowed the region to play a critical role in the global supply chain, cementing its position as a global profit center. Such progress has also enabled and nurtured our own regional champions, many of which have moved ahead to do even more for the ASEAN people. Channeling of funds within regional economies to meet regional demands would reduce ASEAN dependency on other major economies, thus according the region diversification in risk and resilience. Initiatives under the ASEAN Economic Community (AEC) provide tailwinds to regional integration.”
“As we aim to strengthen our bilateral ties, both Malaysia and Taiwan have a lot to offer to each other. Premised on Taiwan’s success stories in creating strong “entrepreneurship culture” and their achievement in transforming their SMEs into tech giants, perhaps we can work together on the capacity building to train high-potential Malaysian SMEs via high-level strategic partnership on technology and digital economy.”
