Malaysia to improve its economy in 2019
Starting February to April of this year, the Malaysia economy is forecasted to grow. Based on the “Malaysian Economic Indicators: Leading, Coincident and Lagging Indexes for October 2018” report released by the Department of Statistics, the Leading Index (LI) increased from negative 1.7% (September 2018) to negative 0.7% (October 2018). The LI is one of the economic indicators used to see an economy’s performance. For LI, it forecasts a country’s economic development four to six months ahead. According to chief statistician Datuk Seri Dr. Mohd Uzir Mahidin, the positive change of the LI in October is attributed to the rise of real imports of basic precious and non-ferrous metals.
Similar to the LI, the Coincident Index (CI) also increased by 1% due to higher volume index of retail trade and real contributions of EPF. The CI measures the country’s current economic activity.
Other indicators for Malaysia’s future economic growth
In addition to an improved LI and CI, other economic indicators also imply Malaysia’s positive economic development in the future. Despite the Malaysia economy being led by a new government, the Pakatan Harapan (PH) administration, it saw its foreign direct investment rise by 250% to $11.8 billion and exports increase to $23.3 billion from January to September 2018. In the same period, inflation in Malaysia economy remained low at 1.2%.
Future plans for Malaysia Economy
In the future, the government seeks to prioritize economic development and realize the citizen’s aspirations. This includes improving the existing welfare schemes like the Health Protection Fund and providing aid to the rubber tappers, Felda settlers, and people working in small cities and towns.
Despite the government’s plan to focus on economic development in 2019, Economic Affairs Minister Azmin Ali notes that hard work, sacrifices, and commitment will be needed to overcome future challenges that await the Malaysia economy.