News – M’sia enjoying gravity-defying boom


Spending, spending, spending…

In an article by Jeremy Grant, the financial daily said this was due to big-ticket government spending, lending to business by well-capitalised banks, and robust consumer demand, fuelled by pay rises for civil servants and cash handouts that have even seen taxi drivers receive vouchers for free replacement tyres.

On Thursday, data announced by Bank Negara showed the economy grew by 5.4%, that was above consensus expectations of 4.6%, and the 4.9% recorded – after an upward revision – for the previous quarter.

It said Malaysia’s stock market had been among the best performers in the world, buoyed by big flotations including Felda, which was the second-largest initial public offering after Facebook when it raised over US$2bil last month.“Bankers are cashing in with a parade of further IPOs expected within months. Much of the impetus behind the growth comes from an “economic transformation programme” initiated by Prime Minister Datuk Seri Najib Tun Razak when he came to power in 2009.

This involves dozens of government-backed projects designed to boost per capita income to US$15,500 (RM48,550) by 2020, from US$9,600 last year and lift Malaysia out of its “middle-income trap,” Grant wrote.