PM outlines strategies to achieve national vision
The Prime Minister Dato' Seri Abdullah Ahmad Badawi outlined on Friday the Government's short-term and long-term strategies for Malaysia to achieve its vision.

Allocation up 2.5 %
A total of RM168.8bil has been allocated under Budget 2008 – an increase of 2.5% over 2007.

Private consumption and investment key drivers
Monetary policy in 2007 continues to support sustainable economic growth with price stability.

Domestic demand to spearhead growth to between 6% and 6.5%
Malaysia's economy is anticipated to strengthen further to 6% -6.5% in 2008 with positive contribution from all sectors of the economy.

Corridors to reduce socio-economic imbalances
Two economic corridors have been launched in order to reduce socio-economic imbalances among the regions as well as between rural and urban areas.

Manufacturing sector to expand 3.1% this year
The manufacturing sector is expected to grow 3.1% this year, supported by domestic-oriented industries, particularly chemicals and chemical products, food and, construction-related industries.

Good showing by services sector
The services sector is expected to register solid growth of 9% as opposed to last year's 7.2%, exceeding overall economic expansion.

Construction sector booming
Value add of the construction sector increased significantly by 4.4% in the first half of 2007 (January-June 2006: -1.2%), largely led by increased civil engineering activity due to the implementation of Ninth Malaysia Plan (9MP) projects.

Food commodities give big boost to agriculture
The agriculture sector continued to expand, supported by food commodities.

Higher crude oil output in H2
Growth in the mining and quarrying sector for the rest of 2007 is expected to be supported by new oil fields coming on stream.

Adding premium to E&E industry
Greater economic benefit can be realised if the electrical and electronics (E&E) industry progresses to higher value segments.

Encouraging private sector to play key role
The National Mission calls for the private sector to play a key role in moving the economy up the value chain.

Tourism set to stay a star performer
Tourism, a star performer of the Malaysian economy, is expected to remain a key focus in years to come.

Higher costs for state governments
State government operating expenditure is expected to increase significantly this year mainly due to salary adjustment.

The Islamic financial sector grows by leaps and bounds
As of July, there were 11 Islamic banks comprising six Islamic subsidiaries (previously Islamic banking windows), two domestic Islamic banks and three new foreign banks.

Unit trust industry getting more robust
The unit trust industry expanded further during the first five months of the year with the launch of new funds and an increase in the number of units in circulation.

Insurance industry expanding further
The insurance industry further expanded in tandem with the favourable economic performance.

Banking on continuing strong economic support
The banking system remained robust in the first six months of the year, supported by strong capitalisation, higher profitability and improved asset quality, in line with favourable economic conditions.

Export momentum picking up
Export growth is expected to pick up momentum towards the second half of the year buoyed by firm commodity prices and an upswing in the global demand for electrical and electronic (E&E) products.

Global FDI to maintain growth
The global foreign direct investment (FDI) growth is forecast to continue with its upward momentum throughout this year.

Higher operating expenses next year
The Federal Government's operating expenditure is estimated to increase to RM128.80bil next year.

Revenue to increase by 14.8%
Revenue is expected to increase by 14.8% to RM141,790mil in 2007, making it 27% of the GDP.

Emerging economies like China to contribute significantly
The continued strong global growth and sustained import demand of 7.3% (2006: 9.4%), particularly for raw materials and commodities, are the main contributors to trade growth.

Overall balance of payment set to stay favourable
Malaysia's overall balance of payments is anticipated to remain favourable in 2007, with the current account posting a surplus for the 10th consecutive year.

Labour force to expand this year
This year's job market is expected to increase from 11.5 million jobs last year to 11.8 million this year.

Helping to enhance urban life quality
Improving the standard and sustainability of quality of life involves enhancement in urban transportation, public safety, environmental stewardship and corporate social responsibility.

World trade volume to rise by 0.3%
Growth in the world trade volume is expected to increase by 0.3% from the 7.1% in 2007. This will be supported by a steady expansion in technology industries, commodities and services.

GLCs on the right track
The progress of government-linked companies (GLC) transformation is in line with the initial targets.

Public and private sectors need to improve efficiency
Promoting sustainable growth will be the focus of economic management policies and strategies next year.

Moderate pace of expansion
The world economy is expected to continue expanding for the fifth consecutive year in 2007, albeit at a more moderate pace, amidst high crude oil prices and uncertainties in the economy of the US.

Making it investor friendly
To enhance competitiveness of the economy, value-added activities will be upgraded. 

Reports by SHAHANAAZ HABIB, HANIM ADNAN, LOONG MENG YEE, KATHY FONG, DALJIT DHESI, IZATUN SHARI, RACHEL KAM, NG CHENG YEE, PARVEEN GILL, LISA GOH, PAUL CHOO, YEOW POOI LING, YVONNE TAN, LOONG TSE MIN and SURAJ RAJ.