Friday, October 15, 2010

Malaysian Economic Report 2010/2011 highlights

Malaysian Economic Report 2010/2011 business highlights:
* Crude oil reserves stood at 5.8 billion barrels as at Jan 1, 2010, estimated to last 24 years based on current production level;

*Crude oil output expected to decline 1.3 per cent to 633,100 bpd (barrels per day) due to scheduled plant maintenance and implementation of the Reservoir Management Plan by Petronas to sustain long-term crude oil production;

*GDP to expand 7.0 per cent in 2010 year from 1.7 per cent contraction in 2009, boosted by strong domestic demand and strong export performance;

*A lower budget deficit of 5.4 per cent of Gross Domestic Product projected for next year from 7 per cent this year despite a 2.8 per cent increase in overall expenditure to RM212 billion;

*A RM9.5 billion provision has been made for six National Key Result Areas (NKRAs), RM6 billion for 12 projects under the National Key Economic Areas (NKEAs);

*A RM22 billion allocation has been provided for completion of projects under the 10th Malaysia Plan;

*Operating expenditure to increase 7.0 per cent to RM162.8 billion but development expenditure to reduce by 9.0 per cent to RM49.2 billion;

*Total payment for subsidies amounts to RM14.7 billion;

*Priority for the immediate roll-out of NKRAs amounts to RM8.3 billion and NKEA initiatives cost RM5.5 billion;

*Services sector to expand 5.3 per cent in 20100 amid the roll-out of programmes and initiatives under the seven services-related NKEAs;

*Agriculture sector to grow 4.5 per cent in 2011 from 3.4 per cent projected for 2010, mainly contributed by the commodity and non-commodity sub-sectors;

*Crude palm oil output to increase 3.4 per cent to 18.4 million tonnes next year from 17.8 million tonnes this year following higher fresh fruit bunch yields from more matured areas especially in Sabah and Sarawak;

*Mining sector to grow 2.9 per cent in 2011 compared with one per cent in 2010 due to higher natural gas production;

*Natural gas output to increase 6.1 per cent to 2,364,840 million standard cubic feet next year on account of robust performance of domestic petrochemical industries and higher global demand, especially from China and India;

*Construction sector to expand 4.4 per cent in 2011 from 4.9 per cent in 2010 supported by accelerated ongoing projects;

*Malaysia's total trade to expand 18.7 per cent to RM1.173 trillion this year from RM988.2 billion last year on the back of improved global economy coupled with robust domestic activities;

*Current account of the country's balance of payment projected to record a higher surplus for the 14th consecutive year, amounting to RM114.2 billion or 14.1 per cent of Gross National Income;

*Domestic demand to see strong 5.8 per cent growth next year supported by greater dynamism of the private sector with expenditure accelerating by seven per cent;

*Private consumption to expand 6.3 per cent, benefiting from higher income and better employment prospects following broad-based economic growth while public sector expenditure is expected to expand at a slower pace of 2.8 per cent;

*Islamic banking assets totalled RM337.6 billion at end-July 2010, accounting for 20.1 per cent of total banking system assets;

*Government to spend RM24.933 million on major subsidies this year;

*Global growth projected to grow at a slower pace at 4.2 per cent in 2011 from 4.8 per cent in 2010

*Taken from NST Online
*For Full Text of Malaysian Prime Minister's Budget 2011 speech, click here.

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