M'sia reforms 'paying off'

It forecast Malaysia’s GDP growth at 4.8 per cent for 2013 and 4.8 per cent for 2014. Consensus is at 5.1 per cent for 2013 and 5.2 per cent for 2014.

The research house said that over the past years, policymakers had unveiled reform agendas such as the New Economic Model, Government Transformation Programme, Economic Transformation Programme (ETP) and National Key Economic Areas.

“One follows the other, and the broad policy thrust is to move towards a high-income economy via re-energising the private sector to lead growth; developing quality workforce and reducing dependency on foreign labour; creating a competitive domestic economy; strengthening the public sector; putting in place transparent and market-friendly affirmative action; building the knowledge base and infrastructure; enhancing sources of growth and ensuring sustainability of growth,” it said.

Morgan Stanley said that since the ETP was introduced in October 2010, 212 billion Malaysian ringgit (about Bt2.1 trillion) in investments had been committed as of the late fourth quarter of 2012. Policymakers sought to jump-start the private sector, and private sector share of investment had also risen from 12.5 per cent of GDP in the fourth quarter of 2010 to 15.5 per cent in the fourth quarter of 2012.