KUALA LUMPUR: Malaysia's move to diversify its economy will see it reducing its dependence on oil and gas revenue while focus will be on the services sector, says Datuk Seri Najib Tun Razak.
The Prime Minister said on Monday that in 2008, oil and gas accounted for 39.7% percent of total revenue, but this year it is forecast to be 28.9%.
"Services now account for 55.2% of GDP, well on the way to our target of 65% by 2020. Inflation is projected to be between 3% and 4%, and we are essentially at full employment," he said at the opening of the Invest Malaysia 2014.
Najib, who is also the Finance Minister, said since the Asian Financial Crisis, the government had focused on the fundamentals to create a strong and stable financial architecture.
He added the government had opened the economy to foreign investment and it had also directed resources and policies towards key economic priorities.
"And the results speak for themselves. Last year, GDP grew by 4.7%. In the first quarter of this year, it was 6.2%, exceeding expectations. From 2009 to 2013, GNI per capita grew an impressive 42.5%, reaching US$10,060; and the overall poverty rate dropped to 1.7% in 2012, down from 3.8% in 2009," it added.
Najib said due to healthy labour market conditions and sustained income growth, private consumption grew 7.6% in 2013, compared with 6.9% in 2010. It now accounts for 51.2% of GDP, well on course to achieve around 60% of GDP by 2020.
Private investment has also surged, growing 15.3% between 2010 and 2013 - more than triple the compounded annual growth rate compared to the previous three-year period, he added.
"Total private investment last year reached RM161.1bil - surpassing our target for the year by some 8.6%, and almost double the RM86.7bil invested in 2010.
"This investment has been put to productive use, helping to create jobs and grow stronger businesses.
"Malaysian companies' market capitalisation has grown by 184 percent since 2009. Back then, there were 194 publicly listed companies with income over RM500mil. Today, there are 274," he said.
Najib added sectors in the National Key Economic Areas have created a total of 1.3 million additional high value jobs in the past three years.