Bright Outlook For Positive Growth In Third Quarter, Says Najib

KUALA LUMPUR, Nov 3 (Bernama) -- Higher spending from the stimulus packages has brightened prospects for the economy to chalk up positive growth in the third quarter of this year after a contraction of 3.9 per cent in the second quarter, Prime Minister Datuk Seri Najib Tun Razak said Tuesday.

The more optimistic outlook was based on the much-needed economic activities generated by the stimulus packages which made up for the slowdown in private sector demand, Najib, who is also Finance Minister, said.

He said the RM67 billion fiscal stimulus packages implemented by the government, accounting for almost 10 per cent of the gross domestic product, have helped the economy through the stifling global recession.

"Our stimulus packages, opposed by many initially, are now seen as critical to stimulating spending.

"And only a few weeks ago, (we unveiled) a new budget that will cut the deficit next year, invest in priority areas such as infrastructure and services and keep our economy on the recovery path," he said in his keynote address at the Sixth Annual Kuala Lumpur Islamic Finance Forum.

Najib said as the economy was regaining its balance, the country needed to look ahead to ways it should adapt to move from simply emerging from recession to becoming a country that is thriving and growing.

"Structural changes in the global balance of consumption and labour markets necessitate Malaysia to review and realign its growth strategies," he said.

He said Malaysia's future growth prospects hinged on the ability to identify and succeed in new areas of economic activities and to take advantage of opportunities in a challenging environment.

The country must also shift its focus from over-reliance on the manufacture and export of physical goods towards a more holistic approach that captures higher value in a knowledge-driven global economy, he added.

-- BERNAMA