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Malaysia To See 5.4 Pct GDP Growth This Year

[ 08-07-2014 ]

PUTRAJAYA, June 27 (Bernama) -- Malaysia is expected to register real gross domestic product (GDP) growth of 5.4 per cent this year, according to World Bank's Malaysia Economic Monitor: Boasting Trade Competitiveness launched today.

The report said the GDP was expected to decelerate to 4.6 per cent next year due to base effects and would normalise to five per cent in 2016.

"The contributions of domestic demand will decline as exports pick up," said the report which was launched by Minister in the Prime Minister's Department Datuk Seri Abdul Wahid Omar.

Also presence were World Bank Country Director for Malaysia Ulrich Zachau and World Bank Senior Economist for Malaysia Frederico Gil Sander.

The 93-page report also said changes in administered prices and the introduction of the goods and services tax (GST) would lead to a modest pick-up in inflation from 2.1 per cent last year to 3.5 percent this year and 3.4 per cent next year.

It said the introduction of GST would support consolidation efforts in medium term, and GST was expected to eventually broaden the tax base and diversify it from oil revenue.

"As a result of consolidation, debt levels are expected to decline," it said.

-- BERNAMA