THE State’ economy is estimated to grow at 0.7% this year while the GDP in 2010 is forecast to grow at 2.8% amid slight improvement in the global economy and commodity prices, and the implementation of accommodative fiscal and monetary policies at the national-level, Deputy Chief Minister and Minister of Industry Development, Datuk Patinggi Tan Sri Dr George Chan Hong Nam said.
The manufacturing sector was expected to perform slightly better at 2.6% next year on the premise that (export) demand for manufactured products would improve as the world economy stabilised, said Chan.
He assured that both the State and Federal Governments would continue to provide conducive environment to encourage more business activities despite the economic downturn.
As emphasised by Chief Minister in the State 2010 Budget, Chan said, the State Government and its machinery would ensure that all projects under the Ninth Malaysia Plan and the Stimulus Packages would take off swiftly and smoothly.
“We would like to generate more domestic economic activities to cushion the impact of the external economic slowdown. I hope that our local business and industrial communities will take full advantage of measures initiated by the government to enhance their business activities to generate further growth,” he said.
Chan said he was grateful that the Chief Minister had allocated RM1,271 million or 46% of the total proposed development budget for commerce and industry next year, and the provision for the implementation of various projects and activities including investments, development of industrial estates and tourism. He said the provision would help to accelerate the business and industrial sector further.
“Our new approach now is to shift to a new economic model based on innovation, creativity and high-value added activities so that we can move out from the middle income bracket,” he explained.
As announced by the Prime Minister, Chan said the federal government would intensify private sector contribution in order to drive the economy further, and towards this end, the Federal Government would give priority to enhancing domestic investment, and encouraging local companies abroad to remit their profits, and reinvest in the country.
“The local business community should take this opportunity to enhance domestic investments by expanding their business locally,” he stressed.
And in view of the stiff competition from neigbhouring countries and emerging economies in attracting the limited global FDIs, he said, aggressive and innovative measures must be taken to attract and increase FDI inflows.
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