Sarawak economy to grow at four per cent in 2016
SARAWAK’S
economic growth is expected to sustain at four per cent for 2016 with
the continued uncertainties in the global market, particularly with the
slowdown in emerging markets and weaker commodity prices.
Chief Minister Datuk Patinggi Tan Sri Adenan Satem said the gross domestic product (GDP) growth in 2016 is expected to remain broad based and continue to be driven by the services sector, supported by private consumption and tourism-related activities.
“The services sector is projected to grow by 5.9 per cent, with continued expansion in all sub-sectors,” he said when tabling the Supply 2016 Bill, (2015) in the August House yesterday.
Adenan said the manufacturing sector was expected to grow by 3.7 per cent for 2016, with the growth anticipated to be driven by higher demand for resource-based products.
“In addition, the roll out of infrastructure projects under the 11th Malaysia Plan (11MP) is envisaged to increase the demand for building materials.
“The construction sector is projected to grow by 6.4 per cent for 2016, benefiting from the implementation of 11MP projects,” he pointed out.
Some of the major projects included the on-going construction of the Pan-Borneo Highway, the new Mukah Airport, Kuching Waste Water Management System Package 2 and upgrading of Batu Kitang Water Treatment Plant.
In 2016, he said the agriculture sector was anticipated to remain resilient with a projected growth at four per cent to be supported by higher output of palm oil, rubber, food, livestock and fisheries sub-sectors.
“For 2016, growth in the mining sector is expected at 2.3 per cent, driven by the expected higher output of natural gas and crude oil.”
On the demand side, Adenan said public investment was expected to register a growth of 3.3 per cent next year as more rural projects approved under 11MP would be rolled out for implementation.
Private investment, he said, was anticipated to grow by 6.8 per cent and continue to be driven by investment in export-oriented industries.
“Growth in public consumption is expected to grow by 3.1 per cent next year while private consumption is projected to grow by 6.3 per cent, benefiting from stable employment condition and wage growth. The increment of minimum wage for workers in the private sector and the salary revision of the civil service and BR1M (Bantuan Rakyat 1Malaysia) are expected to increase household purchasing power.”
He remarked that external trade was expected to rebound in tandem with better regional growth prospects and firm domestic economic growth next year.
In the first half of 2015, the balance of trade continued to record a surplus of RM28.6 billion despite contraction in both gross exports and imports, he said.
“The gross exports contracted by 22.7 per cent due to the weaker commodity prices, particularly oil and gas as well as palm oil. Export receipts from mining, timber and other commodities dropped by 26.6 per cent. However, exports for other manufactured goods rose by 9.6 per cent.
“Gross imports declined by 15.3 per cent for the first half of 2015 due to the lower importation of intermediate and capital goods. However, imports of consumption goods, particularly food increased by 3.4 per cent.”
With continued government efforts to cushion inflation, Adenan said inflation was expected to remain below three per cent next year.
“Consumer price rose at a slower pace of 1.2 per cent in the first nine months of 2015. Of the Consumer Price Index components, price increases in food and non-alcoholic beverages category was the main contributor, accounting for one per cent of the overall inflation rate in 2015.”
Chief Minister Datuk Patinggi Tan Sri Adenan Satem said the gross domestic product (GDP) growth in 2016 is expected to remain broad based and continue to be driven by the services sector, supported by private consumption and tourism-related activities.
“The services sector is projected to grow by 5.9 per cent, with continued expansion in all sub-sectors,” he said when tabling the Supply 2016 Bill, (2015) in the August House yesterday.
Adenan said the manufacturing sector was expected to grow by 3.7 per cent for 2016, with the growth anticipated to be driven by higher demand for resource-based products.
“In addition, the roll out of infrastructure projects under the 11th Malaysia Plan (11MP) is envisaged to increase the demand for building materials.
“The construction sector is projected to grow by 6.4 per cent for 2016, benefiting from the implementation of 11MP projects,” he pointed out.
Some of the major projects included the on-going construction of the Pan-Borneo Highway, the new Mukah Airport, Kuching Waste Water Management System Package 2 and upgrading of Batu Kitang Water Treatment Plant.
In 2016, he said the agriculture sector was anticipated to remain resilient with a projected growth at four per cent to be supported by higher output of palm oil, rubber, food, livestock and fisheries sub-sectors.
“For 2016, growth in the mining sector is expected at 2.3 per cent, driven by the expected higher output of natural gas and crude oil.”
On the demand side, Adenan said public investment was expected to register a growth of 3.3 per cent next year as more rural projects approved under 11MP would be rolled out for implementation.
Private investment, he said, was anticipated to grow by 6.8 per cent and continue to be driven by investment in export-oriented industries.
“Growth in public consumption is expected to grow by 3.1 per cent next year while private consumption is projected to grow by 6.3 per cent, benefiting from stable employment condition and wage growth. The increment of minimum wage for workers in the private sector and the salary revision of the civil service and BR1M (Bantuan Rakyat 1Malaysia) are expected to increase household purchasing power.”
He remarked that external trade was expected to rebound in tandem with better regional growth prospects and firm domestic economic growth next year.
In the first half of 2015, the balance of trade continued to record a surplus of RM28.6 billion despite contraction in both gross exports and imports, he said.
“The gross exports contracted by 22.7 per cent due to the weaker commodity prices, particularly oil and gas as well as palm oil. Export receipts from mining, timber and other commodities dropped by 26.6 per cent. However, exports for other manufactured goods rose by 9.6 per cent.
“Gross imports declined by 15.3 per cent for the first half of 2015 due to the lower importation of intermediate and capital goods. However, imports of consumption goods, particularly food increased by 3.4 per cent.”
With continued government efforts to cushion inflation, Adenan said inflation was expected to remain below three per cent next year.
“Consumer price rose at a slower pace of 1.2 per cent in the first nine months of 2015. Of the Consumer Price Index components, price increases in food and non-alcoholic beverages category was the main contributor, accounting for one per cent of the overall inflation rate in 2015.”
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