Malaysia Trims 2016 Growth Forecast to 4%-4.5%
- Najib forced to review spending for 2nd straight year on oil
- Deficit target remains unchanged at 3.1% of GDP for 2016
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Malaysia trimmed its growth expectations for 2016 after a decline in oil prices crimped the outlook for exports and government revenue. Prime Minister Najib Razak is counting on consumers to hold up the economy, finding ways to put more money in their pockets.
The government will reduce mandatory employee contribution rates to the national pension fund by 3 percentage points in a move that could boost private spending by 8 billion ringgit ($1.9 billion) a year, Najib said in a speech Thursday. The economy will expand 4 percent to 4.5 percent this year, compared with an earlier projection of as much as 5 percent, he said.