MAJOR FACTORS CONTRIBUTINGTO MALAYSIA’S ECONOMIC GROWTH

3 Pages 839 Words

CHAPTER 1


INTRODUCTION


1.1 Overview of present Malaysian economic standing

Malaysia has achieved impressive growth and has continued its economic transformation since the post crisis period. It is considered one of the fastest growing countries in this region, and is progressing towards becoming a developed country by the year 2020.
The country’s net international reserves blew up high, reflecting the more robust economic activity, generally improved economic performance and inflows of foreign direct investment and portfolio investments.
Economically, Malaysia is progressing at average 5% growth and is predicted to increase another percent this year. The economic outlook for Malaysia in the immediate term is good, as it is for most of Asia.



CHAPTER 2


FINDINGS AND DISCUSSION


2.1 Factors of Malaysia’s economic growth for post crisis period

One of the factors contributing to Malaysia’s economic growth in 2004 is strong growth of private sector, where private investment is expected to accelerate this year with a more significant contribution to growth as is expected of private consumption.
Another major factor would be high industrial output as an effect of open trade and investment. Malaysia's pursuit of open trade policies and its attractiveness to foreign direct investment (FDI) have led to impressive growth of the country.
Political stability, resulting from competent leadership and effective government has also contributed to Malaysia’s economic growth for the post crisis period.


2.2 How these factors contribute to Malaysia’s economic growth for post crisis period

2.2.1 Strong growth of private sector

According to Bank Negara Malaysia, the growth enhancing effects of fiscal policy and low interest rates will continue to support private sector activities. The private sector is expected to continue the lead role, being known as the engine of growth, with its contribution to gro...