DM Analytics chief economist Muhammed Abdul Khalid said the GDP growth rate, which was announced as 5.8% in the second quarter of this year compared with 4.2% in the whole of 2016, did not matter as much as the actual situation experienced by the people.
“What matters are not headline GDP figures, but the consequences and effects of economic growth on the rakyat’s well-being,” he was quoted as saying in the report.
He added that Malaysia must focus on inclusive growth instead of merely aiming to become a high-income nation.
The Edge’s report said data from Bank Negara Malaysia (BNM) showed that wages and salaries of Malaysian workers had grown by less than 1%, or about RM17 in real terms, despite the “resilient” pace of economic growth last year.
“Likewise, the 4.2% GDP growth rate is belied by persistent joblessness, which rose 13% last year, according to the central bank,” it added.
It also cited a Khazanah Research Institute report released last year that pointed to Malaysian households having a very small savings rate of 1.4% in 2013.
“Bank Negara Malaysia’s data supported this, as it showed that only 1 in 10 Malaysians can survive more than six months if they lose their main source of income.
“In comparison, the US household savings rate, which is generally considered to be very low, is at 5%” the report said.
On July 3, Prime Minister Najib Razak had said in his blog posting that Malaysia was able to record achievements that it could be proud of despite challenges such as the global market uncertainty and falling oil prices.
He said that overall, the nation’s economic performance for the first quarter of 2017 remained stable and strong, expanding by 5.6%, with foreign direct investment rising to RM17 billion.
Treasury secretary-general Mohd Irwan Serigar Abdullah later said that the country’s economy can record 5% or more GDP growth this year, based on the country’s first-half performance.
2nd quarter GDP growth beats forecasts as economy expands 5.8%