ID :
211672
Fri, 10/07/2011 - 12:13
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https://www.oananews.org//node/211672
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MALAYSIA'S EXTERNAL POSITION TO REMAIN STRONG
KUALA LUMPUR, Oct 7 (Bernama) -- Malaysia's external position is expected
to remain strong next year backed by steady intra-regional trade and services
related activities, said the Treasury Economic Report 2010/2011.
The current account is envisaged to record a surplus for the 15th
consecutive year since 1998 underpinned by a larger surplus in the goods and
services account.
The goods account is expected to register a surplus of RM142.7 billion in
2012 compared with RM139.7 billion in 2011, spurred by an expansion in domestic
economic activities and higher export earnings of manufactured goods, as well as
firm commodity prices.(US$1=RM3.17)
"Exports are expected to grow six per cent next year to RM724 billion versus
a 6.7 per cent growth to RM682.7 billion in 2011.
"Imports, meanwhile, are anticipated to pick up strongly by 7.0 per cent to
RM581.2 billion compared with a 7.5 per cent growth amounting to RM543 billion
in 2011, reflecting strong investment and consumption activity in the domestic
economy," the report said.
The treasury added the services account was expected to record a turnaround
to register a net inflow of RM0.9 billion in 2012 compared with a decline of
RM1.4 billion, in 2011.
In contrast, the deficit in the income account is envisaged to increase to
RM28 billion compared with a decline of RM21.9 billion in 2011, on account of
higher profits and dividends from foreign companies operating in Malaysia.
"Furthermore, the net outflow in the current transfers accounts is expected
to increase to RM22.8 billion compared with a decline of RM21.9 billion.
"However, the surplus in the goods and services account will be more than
sufficient to offset the net outflow in the income and current transfers
accounts," the report added.
Taking all these into consideration, the Treasury said current account
surplus was projected to record a larger surplus of RM92.9 billion or 10.4
per cent of Gross National Income in 2012 versus a growth of 10.9 per
cent amounting to RM89.3 billion in 2011.
-- BERNAMA
to remain strong next year backed by steady intra-regional trade and services
related activities, said the Treasury Economic Report 2010/2011.
The current account is envisaged to record a surplus for the 15th
consecutive year since 1998 underpinned by a larger surplus in the goods and
services account.
The goods account is expected to register a surplus of RM142.7 billion in
2012 compared with RM139.7 billion in 2011, spurred by an expansion in domestic
economic activities and higher export earnings of manufactured goods, as well as
firm commodity prices.(US$1=RM3.17)
"Exports are expected to grow six per cent next year to RM724 billion versus
a 6.7 per cent growth to RM682.7 billion in 2011.
"Imports, meanwhile, are anticipated to pick up strongly by 7.0 per cent to
RM581.2 billion compared with a 7.5 per cent growth amounting to RM543 billion
in 2011, reflecting strong investment and consumption activity in the domestic
economy," the report said.
The treasury added the services account was expected to record a turnaround
to register a net inflow of RM0.9 billion in 2012 compared with a decline of
RM1.4 billion, in 2011.
In contrast, the deficit in the income account is envisaged to increase to
RM28 billion compared with a decline of RM21.9 billion in 2011, on account of
higher profits and dividends from foreign companies operating in Malaysia.
"Furthermore, the net outflow in the current transfers accounts is expected
to increase to RM22.8 billion compared with a decline of RM21.9 billion.
"However, the surplus in the goods and services account will be more than
sufficient to offset the net outflow in the income and current transfers
accounts," the report added.
Taking all these into consideration, the Treasury said current account
surplus was projected to record a larger surplus of RM92.9 billion or 10.4
per cent of Gross National Income in 2012 versus a growth of 10.9 per
cent amounting to RM89.3 billion in 2011.
-- BERNAMA
