TUESDAY, 14 OCT 2014 More Measures Needed To Address Household Indebtedness, Says Economist By Siti Radziah Hamzah KUALA LUMPUR (Bernama) -- 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 economist. 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. However, businesses and 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 Zahidi. “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 Securities and 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. -- BERNAMA