PUTRAJAYA, Malaysia Oct 22 (NNN-Bernama)The tabling of the 2019 Budget will give clear indications to investors on the government’s economic development plan for next year, said Deputy Economic Affairs Minister Dr Radzi Jidin.

He said the tabling of the Mid-Term Review of the 11th Malaysia Plan report last Thursday had illustrated the economic direction of the new administration.

For me, the tabling of the report has shown the direction (of the government) and the 2019 Budget announcement on Nov 2 will complete the government’s explanation on the country’s economic development plan for next year, he said, adding that Malaysia’s current economic situation is stable.

Radzi was speaking to reporters after officiating the Stakeholders Seminar titled Measuring Malaysia’s Real Economic Development By Taking Into Account Economic Welfare and Sustainable Sources here today.

However, investors had taken a cautious approach following Pakatan Harapan’s victory in the 14th General Election, he said.

Radzi said investors were also influenced by many other factors including global developments such as the trade war between the US and China, as well as the increase in US interest rates which provided both push and pull factors.

For the push and pull factors in Malaysia, investors are awaiting the new government’s indications and directions, he said.

Meanwhile, Radzi said that the gross domestic product (GDP) was not a clear indicator of the country’s economic growth rate.

This can be seen when GDP shows growth but the people do not feel the effects. Hence, we are introducing new indicators (to give a better picture), he said.

National Stakeholders Seminar Chairman Dr Jamal Othman said the half-day seminar also discussed on new indicators which can give a clearer picture on the country’s economic growth.

Apart from GDP, we should also evaluate economic growth on the basis of public welfare and environmental effects, he said.

Jamal added that he is leading a group of researchers in an initiative to introduce a more comprehensive and inclusive macro-economic indicator called the Genuine Progress Indicator (GPI).

The GPI is widely used in developed countries such as the US, New Zealand, Australia, South Korea, China and Japan.

Source: NAM News Network