2019 Budget chance for govt to build up economic basics

KUALA LUMPUR: The 2019 Budget presents a good opportunity for the new government to strengthen the fundamentals of the economic sub-sectors which need attention, said  University Putra Malaysia’s Economics and Management Faculty Dean, Professor Azali Mohamed.

He said the 2019 Budget was a prudent budget, especially in managing the country’s debt as well as its focus on the Bottom 40 (B40) household income group.

“On the whole, the budget provides a solid foundation in preparation for the 12th Malaysia Plan which will start in 2021,” he said to Bernama recently.

In terms of Gross Domestic Product (GDP), he said the current global trend is not like how it was in the early 1980s, with global economic growth ranging between three per cent and five per cent at present.

“If we can achieve a five per cent GDP growth in 2019, it is considered good, as the nation’s economic growth is not solely dependent on domestic demand.

“Malaysia is an open economy in terms of trade, and at the same time, we are also hoping the domestic sectors to also help boost economic growth,” he said.

Azali said the GDP growth was also dependent on external factors, growth in foreign direct investments, the global oil price and sans economic crisis.

He predicted that the global oil price would not exceed US$100 per barrel by year-end if the Organisation of the Petroleum Exporting Countries is able to control its output, adding that it would also be a problem if the price is too high.  – Bernama