KUALA LUMPUR: The Asian Development Bank (ADB) stands ready to help Malaysia address remaining challenges to ensure sustainable growth including taking advantage of Asean’s ongoing integration, says the multilateral development finance instition’s president, Takehiko Nakao.
In a statement issued to Bernama, Nakao said the Malaysian economy, which enjoyed solid growth of six per cent last year, is facing macroeconomic challenges from, among others, lower oil and gas prices.
“The government’s upcoming 11th Malaysia Plan 2016 to 2020 is crucial to ensure Malaysia remains competitive in a rapid evolving region.
“Continued support to create an enabling environment for private sector development would attract increased foreign direct investment (FDI) and allow local private firms to take full advantage of new opportunities such as regional supply chains,” he said.
The statement said Nakao and Prime Minister Datuk Seri Najib Tun Razak agreed that further regional cooperation and integration should be a priority for Malaysia, a founding member of Asean and its current chair.
Nakao encouraged the government to upgrade efforts to diversify the economy including through knowledge industries such as biotechnology.
He also commended the plan to introduce the Goods and Services Tax (GST) and the removal of fuel subsidies.
Nakao had met Najib and Second Finance Minister Datuk Seri Ahmad Husni Hanadzlah on ways ADB could further support the country’s efforts to reach high-income status by 2020.
Nakao also attended the 19th Asean Finance Ministers’ Meeting where he outlined the region’s economic outlook and policy challenges in the inaugural year of the Asean Economic Community (AEC).
ADB has specialised knowledge in this field and has provided support to Asean, the Brunei Darussalam–Indonesia–Malaysia–Philippines East Asean Growth Area (BIMP–EAGA), and the Indonesia–Malaysia–Thailand Growth Triangle (IMT–GT), in each of which Malaysia is an active partner.
Nakao said the ADB-supported Asean Infrastructure Fund, which is hosted by Malaysia, is an ideal vehicle to mobilise investments to promote integration through infrastructure projects.
Sectoral priorities include agriculture, education and energy.
ADB’s future support will be consistent with Malaysia’s middle-income status, and reflects the country’s active promotion of regional cooperation as well as enhancement of productivity and innovation.
In an address to the Asean Finance Ministers’ Meeting, Nakao said Asean’s growth is expected to remain robust – with 2015 regional gross domestic product likely to exceed last year’s 4.4 per cent and rise further in 2016.
Benefits from national infrastructure would be maximised by cross-border roads, railways, and ports, he said. — Bernama