KUALA LUMPUR: The government is mulling the possibility of introducing a stimulus programme to spur economic growth, Second Finance Minister Datuk Johari Abdul Ghani said.
He said such action, however, is still in the preliminary phase as the government is going through the engagement process with some focus groups.
“We also have to be very mindful that in anything we want to do, there is a need to look at our capacity, (which is) the government’s ability to ensure the revenue needed.
“We can’t simply do something that continues the borrowing game. There is a need to strike a balance,” he told reporters after officiating the 31st National Economic Briefing of the Malaysian Institute of Economic Research (MIER) here yesterday.
Earlier, in his speech, Johari said, he was optimistic over the nation’s economy, with the steady and consistent growth in the first quarter of 2016, of a moderate 4.2 per cent.
“It mainly reflected the external shocks to the economy and cautious spending by the private sector,” he said.
He cited the private sector as a key driver of growth, with consumption expanding by 5.3 per cent, supported by continued wage and employment growth.
“Private investment grew at a slower rate of 2.2 per cent, mainly attributable to the cautious business sentiment and lower investments in the upstream mining sector.
“The current resilience is a testament to the earlier reforms and structural adjustments undertaken by the government over the last few decades, enabling the Malaysian economy to weather multiple external and domestic shocks,” Johari said. — Bernama