Malaysia Estimated GDP Growth by 8% in 2010

Fuyohhh..Backed by many external and internal factors, Malaysia may able to achieve 8% GDP (Gross Domestic Product) growth this year as forecasted by Am Research Sdn Bhd. If this forecast come reals then it will the strongest since 1996. Other institution that do forecasted Malaysia 2010 GDP are Malaysia Central Bank: Bank Negara forecast of 4.5 to 5.5% GDP growth, while World Bank estimate at 5.7% GDP growth. The Prime Minister Najib Razak itself do estimated a GDP growth of not less than 6%.

 Factors that lead to the higher forecast:

1. The increase in domestic demand of products.
2. Increase in external demand from neighbouring countries and stronger commodity prices.
3. Private sector spending by households increased as well.
4.  Liberalisation of economics introduced by PM Datuk Najib Razak, eg. lift direct foreign investment in financial services and in other tertiary sectors.
5. New initiative, the Government Transformation Programme (GTP) to tackle waste and corruption in the public sector and speed up the implementation of new projects.
6. New Economic Model for fairer wealth distribution to replace the controversial New Economic Policy.
7. Employment and income level rising.
8. Police forces reform to curb high crime rates to with heavier police presences.
9. Ringgit rises at RM3.10 per USD 1.
10. Consumer confidences increase.
11. Exports and imports are to post double-digit growths of 15% and 16% this year for a higher current account surplus of RM125bil or 20% of the GDP.

Najib announced New Economic Model 2010

Prime Minister Najib Razak had announced the latest New Economic Model 2010 as replacement for the controversial New Economic Policy (NEP). The NEP was criticized as bias and was inequality distribution of the nation wealth. The announced New Economic Model was says that to be fair to all races. Prime Minister Datuk Seri Najib Tun Razak says that it will generate benefits for all Malaysians, irrespective of race under its inclusive growth goal and approach. 

The New Economic Model 2010 (NEM) aims:

1. Special Economic Reform unit will be set up to ensure the successful implementation of the NEM and the choosing of economic activities that will be declared as National Key Economic Activities or the country's economic champions.
2. Government has identified 6 National Key Economic Activities to be the engines of growth to generate high growth rates including oil and gas, electronic and electrical, Tourism, Agriculture and Financial Services.
3. NEM will focus on inclusiveness where all Malaysians of all races will contribute.
4. The NEM aims to take Malaysia to a high income country with per capita income of US$15,000, from the current US$7,000, in 10 years.
5. NEAC report will be used as a roadmap to a new Malaysia but welcome public input to make them part of the decision process.
6. NEM forms the backbone of reform and is vital in the rebuilding of the Malaysian economy.
7. Government relooking at the subsidy system and introduction of GST which are common sense policies that need to be implemented.
8. Carry out the economic reforms needed for businesses to grow and people to prosper.

Besides, Najib's also announced that:

1. Petronas has identified two subsidiaries to be listed on Bursa Malaysia.
2. Government and EPF to jointly develop 3,000 acres of land in Sungai Buloh that will produce activities worth RM5bil.
3. Pos Malaysia to get new investor; wages to be improved, as Khazanah Holdings to divest its investment in Pos Malaysia after detailed study and review of postal services.
4. EPF will be allowed to invest more money overseas to get better returns.
5. Government to allow private sector investment in GLCs through new coalition of public-private sector
6. MIDA to be corporatised to make it more flexible, empowered to draw in more investment, including offering instant investment incentives. It is to be renamed Malaysian Investment Development Authority.
7. Private sector innovation to be supported.
8. Modernisation of our education to create a world-class workforce is imperative to achieve high income nation status.