Malaysia confident of 5pc growth in 2008 GDP

THE government is confident of a growth of at least five per cent in the gross domestic product (GDP) for 2008 if the country’s economic growth expanded by an average of 1.2 per cent in the last three months, Second Finance Minister Tan Sri Nor Mohamed Yakcop said yesterday.

“We only need a 1.2 per cent economic growth in the final three months to achieve the five per cent GDP growth. In the first six months, we already achieved 6.3 per cent,” Nor Mohamed said when presenting Budget 2009 for debate in Dewan Negara.

He also said that the RM7 billion stimulus package should be adequate in facing the current global financial crisis and implementing various programmes and activities to boost the domestic economy.

Nor Mohamed said the government was always monitoring closely all developments, particularly those relating to the impact of the world economic downturn.

He denied an allegation that Singaporeans are in the National Economic Council secretariat, saying Malaysia has enough knowledge and experience to manage the economy.

He, however, said that foreign expertise can be used but only in specific sectors.

Nor Mohamed also denied that tax incentives and exemptions in the 2009 Budget offered more benefits to the higher income groups compared to those with lower income.

He said those in the lower income groups stood to gain as the government was providing various tax exemptions and rebates for them, adding that less than two million out of the 11 million working were required to pay taxes.

On a proposal to provide additional allocation to develop small towns in 2009, Nor Mohamed said the government would study the need after looking at how the RM100 million allocation has been utilised. — Bernama