Malaysia To Focus On New Sectors For Economic Transformation

12 July 2010 , By Bernama

As the global economy develops slowly, the government is undertaking a form of economic transformation by focusing more on new sectors and development of the domestic economy.

Second Finance Minister Datuk Seri Ahmad Husni Hanazlah said new sectors such as Islamic finance where Malaysia occupies the top spot globally and services, can support the fall in manufacturing exports.

He said the move to expand domestic investments is the right action towards the projection for the Malaysian economy to expand positively.

"There are indicators now that the global economy is slowing. A number of countries are facing financial problems resulting from the global economic crisis which can impact the export of goods," he added.

According to Ahmad Husni, the decision to enhance the domestic economy and export services, is the basis for the projection that the country's economy is on the right track.

He said this to reporters after officiating the delegates meeting of the Umno Kubang Pasu branch on Saturday.

He also said the government would continue to monitor the growth of the global economy although a number of international financial organisations have expressed optimism that Malaysia would achieve a six per cent growth this year as projected.

"The government policy to reduce the number of foreign workers so as to not be too dependent on cheap labour, will not affect the economic transformation," he explained.

He highlighted that during the economic crisis last year, more than 21 million tourists visited Malaysia, and this is a reason to export services which can make it more attractive for more people to come.

He said that the Talent Corporation was established by the government to bring back 700,000 "high-powered" Malaysians from overseas to spearhead the change in the manufacturing technology sector to a high technology industry which had added value.

On the Budget 2011, he said the Prime Minister Datuk Seri Mohd Najib Tun Abdul Razak, had finished having consultations on it on July 6, with 400 delegates from various sectors in attendance.

They included associations, businesssmen, professionals and individuals who gave their input on three key sectors, namely, macro economics, sectoral and social, which forms the thrust of the formulation of the budget.

Ahmad Husni said the more than 10 focus groups created had finished meeting and looking into detail, the issues raised, including domestic investments as the basis for the country's future economic growth.

However, the ministry was still accepting suggestions from interested parties which would be looked at closely before being brought to the budget meeting, he added.

On trade, he said China and India represent markets with potential, especially for manufactured goods and services.