Real GDP to expand 5-6 pct during 11MP

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Najib is seen tabling the five-year (2016-2020) plan in Parliament yesterday. — Bernama photo

KUALA LUMPUR: Real gross domestic product (GDP) is expected to expand between 5.0 per cent and 6.0 per cent per annum from 2016-2020, resulting in a 7.9 per cent per annum rise in gross national income (GNI) per capita.

Economic growth would be anchored by robust expansion in private consumption and investment, said the Economic Planning Unit (EPU) of the Prime Minister’s Department in the Eleventh Malaysia Plan (11MP).

Prime Minister Datuk Seri Najib Tun Razak tabled the five-year (2016-2020) plan in Parliament yesterday.

“Macroeconomic fundamentals will strengthen through a further diversified economic base, larger domestic savings, balanced fiscal position, low inflation, full employment, and sound financial system,” the EPU said.

It said initiatives to enhance productivity would further boost growth, accompanied by higher national per capita and household incomes, as well as an improved well-being of the rakyat in line with the focus on the people economy.

Labour productivity is projected to increase to RM92,300 in 2020 from RM77,100 in 2015.

The GNI per capita will reach RM54,100 (US$15,690) in 2020, with the average monthly household income increasing to RM10,540 from RM6,141 in 2014.

The EPU said the Malaysian Well-Being Index, on the other hand, is expected to increase by 1.7 per cent per annum from 1.2 per cent as recorded during the 10MP, an indicator of improvement in the well-being of the people.

According to the EPU, real private consumption would increase at an average rate of 6.4 per cent per annum, while public consumption is anticipated to grow moderately by 3.7 per cent per annum.

Private investment is expected to grow at 9.4 per cent per annum, with an estimated average annual investment of RM291 billion in current prices.

Public investment is anticipated to grow at 2.7 per cent per annum, or an annual average of RM131 billion in current prices. — Bernama