income group would, to some Economic imbalances such as

TUESDAY, 14 OCT 2014
More Measures Needed To Address
Household Indebtedness, Says
Economist By Siti Radziah Hamzah
-- While Malaysia’s economic
fundamentals remain relatively
favourable compared to regional
economies, more measures are
likely needed to address issues
such as the elevated level of
household indebtedness, says an
Nor Zahidi Alias said the measures
announced by the government
under the 2015 Budget to ensure
sustainable economic growth are
in the right direction.
measures meant to reduce these
imbalances,” he said.
consumers are likely going to feel
the pinch from slower growth of
the domestic economy in 2015
due to stronger price pressures
and slower credit growth, said Nor
“Overall, Budget 2015 is
essentially a balancing act
between addressing economic
imbalances such as budget deficits
Speaking to Bernama, Malaysian and supporting the people to cope
Rating Corp Bhd Chief Economist with the repercussions from the “Cash assistance to the lower
income group would, to some Economic imbalances such as
extent, help them at this crucial budget deficits have been slowly
reduced and growth has recovered
time,” he said.
with inflation remaining relatively
Nor Zahidi stressed that the real key stable despite increases in the
to ensuring consumer protection past three quarters, he added.
against possible price increases
is proper enforcement of the Price Prime Minister Datuk Seri Najib
Control and Anti-Profiteering Act. Tun Razak said in his Budget 2015
speech on Friday that economic
“Notwithstanding this, a more growth for 2015 is expected to
vibrant external sector in 2015 can remain strong at between 5.0 per
somewhat offset the weaknesses cent and 6.0 per cent while the
of the domestic economy,” he said. fiscal deficit is projected to further
decline to 3.0 per cent of GDP.
Malaysia’s economy has performed
commendably considering what Meanwhile, Bursa Malaysia Bhd
it has gone through after the Chief Executive Officer Datuk
Great Recession in 2009, Nor Tajuddin Atan said the inclusion
Zahidi said, noting that Malaysia under Budget 2015 of Malaysian
registered gross domestic product Government
(GDP) growth of 6.3 per cent in Government Investment Issues
the first half of 2014, the highest to be listed and traded on Bursa
Malaysia would provide more
among Asean countries.
opportunities for investors to be
directly involved in the trading of
bonds and sukuk.
The government will continue to
implement pro-growth policies
and provide a business-friendly
environment to attract investments
and enable private sector activity
to thrive, said Najib.
The FBM KLCI rose 114 per cent
from 884.45 points in January
2009 to a historic new high of
1,892.65 points in July 2014,
while market capitalisation jumped
162 per cent from RM667.87
billion to RM1,749.49 billion on
Oct 7, 2014.