Malaysia On Track For High-income Status

KUALA LUMPUR: Malaysia's target to achieve high-income status is realistic, given its solid growth trajectory, economic stability and strong investor confidence. Its economic growth will continue to be driven by contributions from key states such as Selangor, Sarawak, Kuala Lumpur, and Penang over the next three to six years, said Juwai IQI global chief economist Shan Saeed. 'Selangor currently contributes 25 per cent to the nation's gross domestic product (GDP), Sarawak is set to rise strongly and become a major contributor to the economy, while Penang remains as the manufacturing hub,' he told Bernama. Overall, he expects Malaysia's GDP growth to be around 4.0-5.0 per cent in the next three to five years, supported by a stronger ringgit, as the local note is expected to range between RM4.10 and RM4.40 versus the US dollar. 'The budget deficit target remains under 3.5 per cent with disciplined fiscal policy,' said Shan. Source: BERNAMA News Agency