Wahid: Wrong to say economy worst in five years

The economy grew 5.3% for the first half of this year, and can grow between 4.5% and 5.5% by end of the year, says minister.

KUALA LUMPUR: Malaysia’s economy is still resilient and not the worst in five years as alleged, Minister in the Prime Minister’s Department Abdul Wahid Omar said.

He said although Malaysia was a small and open economy and vulnerable to global uncertainties, it achieved a 6% Gross Domestic Product (GDP) in 2014, exceeding a 5.7% growth forecast by economists and bankers.

“The economy continued to grow 5.3% for the first half of this year, and I believe it could grow between 4.5% and 5.5% in 2015.

“So, the notion that Malaysia’s economy is the worst in five years is not true,” he said when winding up debate on the Supply Bill 2016 at the Dewan Rakyat today.

Wahid said the government’s move to diversify its economic structure, reduce dependence on oil and gas, besides implementing the National Economic Transformation Programme would enable it to achieve the GDP target.

He said based on a study on household income and expenditure, the average household income of the bottom 40% (B40) increased from RM1,440 per month in 2009 to RM2,537 per month in 2014.

“As household income increases, the spending trends also change. For example, changing mobile phones from less sophisticated ones to advanced models or changing local cars to imported ones,” he said.

Dismissing a claim that the income gap among the people has widened, he said in terms of the Gini coefficient, it has been reduced from 0.441 in 2009 to 0401 in 2014.

“Secondly, the ratio of income inequality between the household income of the top 20% and that of B40 has fallen from 6.9-fold to 5.6-fold.

“And thirdly, the distribution of household income of B40 to total income has gone up from 14.3% in 2009 to 16.5% in 2014,” he said, adding that this shows that the income gap among Malaysians has narrowed.

Wahid said the government remained committed in addressing the imbalance in household income under the 11th Malaysia Plan.

– BERNAMA