Last Updated: 2018-03-29
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KUALA LUMPUR, Malaysia March 29 (NNN-Bernama) -- Najib Tun Razak said the Malaysian economy would continue to grow at an encouraging pace after Bank Negara Malaysia (BNM) raised its projected growth in 2018 to 5.5-6 per cent.(BNM is Malaysia’s central bank)

"@BNM_official raises our economic growth forecast for 2018 to 5.5-6.0 per cent from 5.0-5.5, and the overall inflation rate is expected to average between 2.0-3.0 per cent from 3.0-3.5. Insya-Allah, our economy will continue to grow at an encouraging pace," the Prime Minister said in his Twitter posting today.

The Malaysian economy grew 5.9 per cent in 2017.

Bank Negara Malaysia (BNM) Governor Muhammad Ibrahim said underpinned by continued strong performance, the Malaysian economy has the potential to record more than 6.0 per cent growth this year.

"Private consumption growth will likely be sustained, supported by continued employment growth and earnings, lower inflation and better sentiment," he said in a briefing with senior editors on Tuesday in conjunction with the release of the 2017 Financial Stability and Payment Systems Report yesterday.

Income growth will be supported by strong export performance and various measures taken by the government, such as the 1Malaysia People's Aid cash transfer scheme, individual income tax reduction, and special payments to all civil servants and retirees.

Meanwhile, private investment growth will also be maintained, supported by ongoing and new capital spending in the manufacturing and services sectors, as well as strengthened by continued and positive business sentiment.