Malaysia Seeks Domestic Demand Boost in Najib's 2016 Budget
- Economy forecast to grow 4%-5% in 2016 from 4.5%-5.5% in 2015
- 2016 fiscal deficit seen narrowing to 3.1% of GDP from 3.2%
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Malaysian Prime Minister Najib Razak is counting on domestic demand to shore up a cooling economy as global growth falters, pledging to boost consumption, spur private investment and accelerate selected public infrastructure projects next year. And he plans to achieve this without deepening the budget deficit even as oil revenue shrinks.
The government predicts gross domestic product will expand 4 percent to 5 percent in 2016, from 4.5 percent to 5.5 percent this year, the Ministry of Finance said in its 2015/2016 economic report released Friday as Najib began his annual budget speech. The fiscal shortfall is forecast to narrow to 3.1 percent of GDP in 2016, from a revised 3.2 percent this year.