Malaysia Economic Monitor, December 2016 : The Quest for Productivity Growth

Malaysia’s economic growth has slowed down but remains resilient to external headwinds. The economic growth rate slowed from 5 percent in 2015 to 4.2 percent, year on year, in the first three quarters of 2016. Private consumption growth slowed down...

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Main Author:	World Bank Group
Format:	Report
Language:	English en_US
Published:	World Bank, Kuala Lumpur 2017
Subjects:	economic growth economic outlook fiscal trends imports volatility risk productivity export competitiveness education skills
Online Access:	http://documents.worldbank.org/curated/en/773621481895271934/Malaysia-economic-monitor-the-quest-for-productivity-growth http://hdl.handle.net/10986/25857

id	okr-10986-25857
recordtype	oai_dc
spelling	okr-10986-258572021-05-25T08:56:40Z Malaysia Economic Monitor, December 2016 : The Quest for Productivity Growth World Bank Group economic growth economic outlook fiscal trends imports volatility risk productivity export competitiveness education skills Malaysia’s economic growth has slowed down but remains resilient to external headwinds. The economic growth rate slowed from 5 percent in 2015 to 4.2 percent, year on year, in the first three quarters of 2016. Private consumption growth slowed down due to a softening labor market and households’ ongoing adjustment to a context of fiscal consolidation. Public investment in infrastructure is offsetting moderation in investment in the oil and gas sector. The gross domestic product (GDP) growth rate is projected to reach 4.2 percent in 2016, with slow improvement moving forward. The fiscal consolidation process remains on track despite lower oil-related revenues. External developments pose the greatest risk to Malaysia’s growth trajectory. Uncertainty regarding the impact of potential US fiscal stimulus policies on global trade, energy prices, financial flows and exchange rates is a major source of external risk, as evidenced with the recent financial outflows from emerging markets and its impact on the value of the ringgit. Bank Negara Malaysia (BNM) has introduced measures to curb ringgit trading in offshore markets while developing and deepening onshore foreign exchange future markets. Continuing good performance on fiscal outcomes, in large part thanks to the introduction of GST, is important in building confidence in the policy framework. This could be supported by further mobilizing and diversifying fiscal revenues, including by broadening the base for the personal income tax and removing some exemptions in the GST. Also, raising efficiency of operational expenditure (i.e. improving the targeting of social assistance) and development expenditures (i.e. greater inter-agency coordination) could provide some additional fiscal space. 2017-01-13T20:14:17Z 2017-01-13T20:14:17Z 2016-12 Report http://documents.worldbank.org/curated/en/773621481895271934/Malaysia-economic-monitor-the-quest-for-productivity-growth http://hdl.handle.net/10986/25857 English en_US CC BY 3.0 IGO http://creativecommons.org/licenses/by/3.0/igo World Bank World Bank, Kuala Lumpur Economic & Sector Work :: Economic Updates and Modeling Economic & Sector Work East Asia and Pacific Malaysia
repository_type	Digital Repository
institution_category	Foreign Institution
institution	Digital Repositories
building	World Bank Open Knowledge Repository
collection	World Bank
language	English en_US
topic	economic growth economic outlook fiscal trends imports volatility risk productivity export competitiveness education skills
spellingShingle	economic growth economic outlook fiscal trends imports volatility risk productivity export competitiveness education skills World Bank Group Malaysia Economic Monitor, December 2016 : The Quest for Productivity Growth
geographic_facet	East Asia and Pacific Malaysia
description	Malaysia’s economic growth has slowed down but remains resilient to external headwinds. The economic growth rate slowed from 5 percent in 2015 to 4.2 percent, year on year, in the first three quarters of 2016. Private consumption growth slowed down due to a softening labor market and households’ ongoing adjustment to a context of fiscal consolidation. Public investment in infrastructure is offsetting moderation in investment in the oil and gas sector. The gross domestic product (GDP) growth rate is projected to reach 4.2 percent in 2016, with slow improvement moving forward. The fiscal consolidation process remains on track despite lower oil-related revenues. External developments pose the greatest risk to Malaysia’s growth trajectory. Uncertainty regarding the impact of potential US fiscal stimulus policies on global trade, energy prices, financial flows and exchange rates is a major source of external risk, as evidenced with the recent financial outflows from emerging markets and its impact on the value of the ringgit. Bank Negara Malaysia (BNM) has introduced measures to curb ringgit trading in offshore markets while developing and deepening onshore foreign exchange future markets. Continuing good performance on fiscal outcomes, in large part thanks to the introduction of GST, is important in building confidence in the policy framework. This could be supported by further mobilizing and diversifying fiscal revenues, including by broadening the base for the personal income tax and removing some exemptions in the GST. Also, raising efficiency of operational expenditure (i.e. improving the targeting of social assistance) and development expenditures (i.e. greater inter-agency coordination) could provide some additional fiscal space.
format	Report
author	World Bank Group
author_facet	World Bank Group
author_sort	World Bank Group
title	Malaysia Economic Monitor, December 2016 : The Quest for Productivity Growth
title_short	Malaysia Economic Monitor, December 2016 : The Quest for Productivity Growth
title_full	Malaysia Economic Monitor, December 2016 : The Quest for Productivity Growth
title_fullStr	Malaysia Economic Monitor, December 2016 : The Quest for Productivity Growth
title_full_unstemmed	Malaysia Economic Monitor, December 2016 : The Quest for Productivity Growth
title_sort	malaysia economic monitor, december 2016 : the quest for productivity growth
publisher	World Bank, Kuala Lumpur
publishDate	2017
url	http://documents.worldbank.org/curated/en/773621481895271934/Malaysia-economic-monitor-the-quest-for-productivity-growth http://hdl.handle.net/10986/25857
_version_	1764460308845297664

Malaysia Economic Monitor, December 2016 : The Quest for Productivity Growth

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