Malaysia's Economic Growth in 2012 and 2013

Malaysia's Economic Transformation Programme (ETP) Annual Report, 2012 was just recently released.

From the Report, Malaysia is expected to be on its way to achieve high-income status by 2020, if not earlier by 2018 if the current economic projections hold true when measured against the GDP growth and aligned with the implementations of the ETP Plan.

In terms of Gross National Income (GNI), Malaysia saw its GNI per capita increased to US$9,970 (RM30,239) as of end 2012 compared to US$6,700 (RM20,321) in 2009, a surge of 49% in the 3 years since the ETP was launched.

The ETP contains detailed Plan of Actions that encompasses 12 National Key Economic Areas (NKEAs) and 6 Strategic Reform Initiatives (SRIs) that aims to lift Malaysia into the high-income band by 2020 as defined by the World's Bank criterion of GNI US$15,000 per capita.

Projects (Entry Point Projects, EPPs) under the ETP gave the economy much needed boosts amidst a slow down in trade and the bleak global outlook with GDP up 5.1% in 2011 and 5.6% last year.

Robust domestic consumer demands, continued economic growth and investments, increase job creations and income growth contributed to the GDP registered.

Investment was at RM211.34 billion as at end 2012 which grew the GNI to RM135.64 billion, creating 408,443 jobs. The ETP as a whole envisions investments worth RM1.4 trillion and the creation of 3.3 million jobs in the 2011 to 2020 period.

According to the Performance Management and Delivery Unit (PEMANDU), the Country had surpassed its GNI and GDP targets for last year. Growth last year even outpaced Asia-Pacific's, which rose an average of 3.8%.

The Governor of the Malaysia Central Bank, Tan Sri Dr Zeti in an interview, in Kuala Lumpur, on 29th April, 2013 said that Malaysia is on track to achieve the GDP growth of 5-6% for 2013. The economy will continue to be driven by strong domestic demand and investments inflow. This is despite the current slow down in China and the challenges in the global economy in Europe, the US, the UK and Japan which are important trading partners to Malaysia.

Tan Sri Zeti said " ... these (global risks) are already priced into our forecast, but if it deteriorates further of course it will affect us".