Wednesday, February 10, 2010

November 19, 2009 14:05 PM

Malaysia Must Move Towards High Quality Economic Growth

KUALA LUMPUR, Nov 19 (Bernama) -- Malaysia must move towards high quality economic growth based on productivity, technology, innovation and creativity to become a high income economy among developed countries.

Minister in the Prime Minister's Department, Tan Sri Nor Mohamed Yakcop said in a challenging environment, productivity was important for achieving Vision 2020 as well as to form a new economy.

"We must improve productivity as without doing this,we cannot achieve our vision," he said after officiating the PTD Alumni Economic Forum 2009 on the 10th Malaysian Plan, themed, A New Paradigm--Overcoming Challenges here today.

To become a developed nation, Malaysia needs to increase the per capita income to US$12,000 from the US$7,000 at present.

"Malaysia will achieve the status of a developed nation at the end of the 11th Malaysia Plan, that is in 2020," he said.

He added that the country should not continue to be trapped by the medium income status forever.

"We must open up as much as we can and explore ways to achieve the status of a high income country.

"At the same time, economic growth must also be spearheaded by a more dynamic private sector, especially in new areas.We need to reasses policies which are less condusive to encouraging a more dynamic private sector," Nor Mohamed said.

In 1997, private investment contributed to 32 per cent of the country's gross domestic product (GDP).

Since the Asian economic crisis, its contribution has declined significantly to less than 10 per cent, among the lowest in this region.

According to Nor Mohamed,the country's successful development formula over the past 50 years can no longer guarantee economic excellence in future.

"The new economic model will take into consideration the global environment which has become more competitive as well as identify and grab opportunties on the global arena," he said.

-- BERNAMA

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