Y.B.
Dr. Ong Kian Ming, Vice Minister of International Trade and Industry, cited the
positive trend of the four major indicators and the five positive factors. He
believed that the Malaysian economy is getting better, and therefore he is
cautious about watching the economic outlook for Malaysia in the second half of
the year.
The four major indicators showing that the
Malaysian economy is improving are:
Manufacturing improvement, the industrial
market has bottomed out
Corporate profit growth, car sales soar
In
the second half of the year, the economy is expected to be better with five
major factors, including the Ministry of Finance's approval of 121
infrastructure projects worth RM13.93 billion, which will have a trickle effect
on construction and consumption activities.
Secondly,
the government refunds consumption tax and income tax to businesses and
individuals, which can promote domestic consumption and investment.
The
third point is that as the government restarts certain large-scale public
infrastructure and construction projects, including East Coast Rail Line Program
and the development of ‘Bandar Malaysia’, it will increase corporate
activities, especially for China companies. The increase in business confidence
will be reflected in the indicators for the second half of this year.
On
the regional front, the leading economic indicators of some ASEAN countries are
also encouraging. The ASEAN Manufacturing Purchasing Managers Index (PMI)
increased to 50.4 in April, reaching the highest index in five months.
Although
the worries caused by the tension between China and the United States continue
to cool down, the fear of a sudden slowdown in the Chinese economy seems to be
exaggerated.
Y.B.
Dr. Ong Kian Ming made the above comments on the first half of the Malaysian
economy on the first anniversary of the administration of Pakatan Harapan.
Y.B.
Dr. Ong Kian Ming said that the Malaysia economy was surrounded by negative
news in the first half of this year, and the public generally felt the negative
atmosphere. This can be seen from the slowdown in retail sales.
He
said that Malaysia has changed its regime at May 09, 2018. After the first
administration, Pakatan Harapan must deal with many financial scandals and
experience periods, and it will inevitably have growth pains during the
economic adjustment period.
“With greater policy certainty and better domestic and regional
economic conditions, I am cautiously optimistic about the direction of the
national economy.”
Malaysia's economy improved indicators:
• Manufacturing improvements;
• The industry market bottoms out;
• Corporate profit growth;
• Car sales are rising in the second half of the year;
• More than 100 infrastructure projects approved will drive
construction activities;
• More consumption tax and income tax refunds activate domestic
consumer investment;
•East
Coast Rail Line Program and ‘Bandar Malaysia’ resumed work to stimulate
investment willingness and corporate activities;
• Some countries in ASEAN are looking forward to economic
indicators;
• China’s
economic hard landing risk has greatly reduced the negative news of the first
quarter of Malaysia’s economy;
• Business
Confidence Index shrank 2.2% year-on-year, falling to negative territory for
the first time in two years;
• Leading economic indicators fell 2.2% in February, writing a
new low since April 2009;
• Total trade in the first quarter fell by 1.5%;
• PMI fell for six consecutive months.
Y.B.
Dr. Ong Kian Ming said that the Pakatan Harapan government ushered in the first
anniversary of the ruling in the first quarter of this year, but in the second
quarter, there were many positive signals from the domestic and international
economies.
The
domestic PMI rose to 49.4 in April from 47.2 in March.
“Although the index is still below the 50-point mark as a
benchmark for good prospects, for Malaysia, IHS Markit, the market regulator
responsible for the index, clarified that the Purchasing Managers’ Index is at
49.4 points, with economic growth in Malaysia. The 5.2% estimate is
consistent."
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