[ 05-04-2016 ]
Government Transformation Plan Successfully Strengthens Economy - Chua
KUALA LUMPUR, April 4 (Bernama) -- Malaysia's economy which has been transformed to be more diversified has succeeded in reducing its dependence on the commodity sector and impact from the fall in the ringgit.
Deputy Finance Minister Datuk Chua Tee Yong said the commodity sector contributed only 18 per cent to the gross domestic product while oil revenue contributed about 22 per cent to the government's revenue last year.
"Due to the more diversified sources of growth and revenue, Malaysia continues to enjoy positive economic growth (among the highest in the region), while the fiscal deficit continues to be stable at the consolidation phase.
"This has helped in strengthening investor confidence in Malaysia and maintaining fund outflow," he said in reply to a question from Datuk Johari Abdul (PKR-Sungai Petani) at the Dewan Rakyat here, today.
Chua said the government had also expedited the implementation proposal from the National Export Council, besides establishing the Special Economic Committee on Aug 20, 2015 and the 2016 Budget Recalibration.
"Communications and meetings with analysts, investors and international rating agencies have also been increased to strengthen investor confidence," he said, adding the ringgit had appreciated compared with many other foreign currencies.
He said the ringgit has gained 10 per cent against the US dollar since January this year and has also appreciated against regional currencies by between five per cent and 9.9 per cent.