SECOND Finance minister Dato Sri Wong Soon Koh said private consumption grew by 6.2 per cent in 2013 due to favourable employment conditions and wage growth.
The higher purchasing power was also due to government financial assistance to targeted groups, implementation of the minimum wage policy, additional annual increments received by public servants and continued consumption credit.
“Import of consumption goods for the year rose by 5.2 per cent,” he said in his winding-up speech yesterday, adding that public consumption grew by 3.6 per cent in 2013 with the implementation of the improved Malaysian Remuneration Scheme.
On public investment, Wong said it rose by 3.5 per cent last year, with the acceleration of capital pending across all sectors, particularly domestic-oriented investment activities under the 10th Malaysia Plan, SCORE, Government Transformation Programme, and Economic Transformation Programme.
“The continued government capital expenditure has enhanced rural basic infrastructure and utilities and at the same time improved business and investment environment in the state.”
With regards to private investment, Wong said it grew by 6.8 per cent in 2013, supported by improved external demand and sustained capital spending across all sectors.
“Loans disbursed for non-residential purposes, particularly to finance commercial complexes, industrial buildings and factories, recorded growth of 21.6 per cent.”
Wong highlighted that the state had continued to be an attractive investment destination for both domestic and foreign investors.
“Total approved investment reported by the Malaysian Investment Development Authority (MIDA) expanded by 77 per cent from RM4,700 million in 2012 to RM8,300 million in 2013,” he said.
“Total approved Foreign Direct Investment (FDI) increased by 79.0 per cent from RM3,800 million in 2012 to RM6,800 million in 2013.”
Foreign Direct Investment (FDI), Wong said, was mainly in manufacturing of basic metal products with Japan, China and Korea as major contributors.