Malaysia economic growth pattern higher than average

Economists surveyed by StarBiz said growth would likely be slower in the second half due to the high base effect experienced in the first half, largely due to the 6.2% growth in gross domestic product (GDP) in the first quarter.

KUALA LUMPUR: Malaysia’s economic growth pattern is still higher than the average and will continue to be positive moving forward despite softer economic conditions regionally, says the World Bank on Tuesday.

“Its growth pattern, whether down a few basis points or up, is still higher than the average,” said its Malaysia Country Manager, Faris H. Hadad-Zervos.

Hadad-Zervos said this to reporters on the sidelines of Business Opportunities and Awareness Workshop here today.

The one-day workshop is held by the World Bank in collaboration with the Performance Management and Delivery Unit, Malaysia External Trade Development Corp, Construction Industry Development Board Malaysia and the Malaysia Digital Economy Corp.

He said Malaysia’s economic growth would be supported by the government’s pro-growth policies, including the budget.

“If you look at Malaysia’s story over the past years, it has been a positive growth story. Malaysia continues to grow in the period when there is a lot of global headwinds.

“What we know so far is a continued sense of adaptation to the outside environment,” Hadad-Zervis said.    

The Malaysian economy grew by 4% in the second quarter of this year, leading to a 4.1% growth in the first half of 2016, in line with the moderate pace of the global economy.

In its recent announcement, Bank Negara Malaysia said, domestic demand was stronger during the quarter but growth was weighed down by the continued decline in net exports and a significant drawdown in stocks.

The country’s gross domestic product growth stood at 4.2% in first quarter 2016 and 4.9% in the second quarter of 2015.

The workshop focuses on how private Malaysian firms can work with the World Bank through its financing development for projects in developing countries.

It also focuses on the products and advisory services offered by the International Finance Corp and the Multilateral Investment Guarantee Agency. -Bernama