Malaysia to maintain 4.8 per cent GDP growth target for 2020

​Malaysia is maintaining its gross domestic product (GDP) growth target of 4.8 per cent for next year, despite a downward revision by the World Bank from 4.6 to 4.5 per cent

Malaysia is maintaining its gross domestic product (GDP) growth target of 4.8 per cent for next year, despite a downward revision by the World Bank from 4.6 to 4.5 per cent.

Finance Minister Lim Guan Eng said indicators showed that Malaysia could secure the GDP target of 4.7 per cent this year and the same was expected for next year.

“We will maintain the target because at the moment all indicators show Malaysia is still on track.

“If things change, we will take the necessary measures,” he told a press conference on the Putrajaya LIFT (Literacy in Financial Technology) Festival 2019, which will be held on Dec 28 and 29.

The festival is aiming to strengthen financial literacy in line with the government’s goal to nurture a digital society.

Putrajaya LIFT Festival is a collaboration with Bank Negara Malaysia and the financial industry which aims to showcase the current and future of the financial industry in Malaysia.

It was reported that the World Bank Group had made the downward revision largely due to weaker than expected private investment and export growth recorded at 0.3 per cent and 1.4 per cent respectively in the third-quarter (Q3) of this year.

Overall investment activity is targeted to expand at 1.4 per cent next year as subdued trade prospects and increased uncertainty weighed on business confidence and investment intentions.

On the scandal-ridden 1Malaysia Development Bhd (1MDB), Lim also said he was unaware that Goldman Sachs Group Inc could end up paying less than US$2 billion (RM8.32 billion) to resolve the United States criminal and regulatory probes over its role in raising money for the Malaysian investment fund, as reported by Bloomberg.

The minister said he had not received any information regarding the said settlement.

Lim said he had contacted the Attorney-General’s Chambers and was told the case would still proceed by the middle of next year.

And on Malaysia’s part, the government is seeking US$7.5 billion in compensation from Goldman Sachs, Lim added.

A few days ago, Prime Minister Tun Dr Mahathir Mohamad had vowed to bring back billions of dollars allegedly stolen from 1MDB, co-founded by his predecessor, Datuk Seri Najib Razak.

The scandal has also embroiled US bank Goldman Sachs, which Malaysia has accused of misleading investors over three bond sales totalling US$6.5 billion that the bank helped raise for 1MDB.

On Putrajaya LIFT 2019, Lim said it would be the first and hoped it could be organised on an annual basis.

“Deputy Prime Minister Datuk Seri Wan Azizah Wan Ismail will launch it on Dec 28 and (it will be) closed by Prime Minister Tun Dr Mahathir Mohamad on Dec 30.”

When asked on whether the ministry would propose to introduce financial literacy as a subject to be taught in schools, Lim said he believed the Education Ministry would have looked into it.

Source: New Straits Times 

Posted on : 12 December 2019
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Last Updated : Thursday 21st May 2020