PM: No plan to revise GDP forecast upwards


HANOI: Malaysia will not revise upwards its Gross Domestic Product (GDP) growth forecast despite JP Mogan’s 7.7 per cent growth forecast for the country this year, Prime Minister Datuk Seri Najib Tun Razak said yesterday.“We will not revise. Malaysia will still maintain its prudent and conservative forecast of between 4.5 per cent and 5.5 per cent for the year,” he said.

He said the 7.7 per cent economic growth forecast by the international rating agency could be due to proven strong economic indicators shown by the country in the first quarter of this year.

The prime minister said these were based on the country’s industrial production, exports and energy consumption for the first three months and energy consumption alone increased 21 per cent in March.

“Alhamdullilah, if we can get 7.7 per cent growth (as forecast by JP Morgan).

“This showed that strong economic recovery could materialise,” he told Malaysian reporters after attending the just-concluded 16th Asean Summit at the National Convention Centre here yesterday.

JP Morgan revised Malaysia’s Gross Domestic Product (GDP) growth forecast to 7.7 per cent, from 6.8 per cent previously, believed to be the highest GDP forecast among economists.

In a report issued this week, JP Morgan attributed the revision to strong regional production data in the first quarter of this year alongside the positive outlook for the manufacturing sector particularly the technology sector.

JP Morgan also noted fundamental improvements in the electrical and electronic sector based on encouraging purchasing managers index and export data in Malaysia. — Bernama