This week, the spotlight is on private sector investments. It also comes in the wake of Bank Negara Malaysia (BNM) forecasting 2014 real gross domestic product (GDP) growth of 4.5% to 5.5% versus the market consensus of 5%. Can the private sector deliver enough investment growth to power the economy?
Historically speaking, yes.
Since 2010, the private sector has registered strong double digit growth in investments. By growing at an average annual rate of 16.1%, it has outpaced average private consumption growth at 7.2% and helped cushion the substantial contraction in Malaysia’s net exports.