Mahathir underlines 10-point policy to boost economy

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Last updated at: (Beijing Time) Thursday, October 30, 2003

Mahathir underlines 10-point policy to boost economy

Prime Minister Mahathir Mohamad Friday underlined a 10-point policy in the government's continuous effort to achieve a balanced and sustainable economic growth for the period 2004-2005.

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Prime Minister Mahathir Mohamad Friday underlined a 10-point policy in the government's continuous effort to achieve a balanced and sustainable economic growth for the period 2004-2005.

The policy is contained in the motion tabled in the Lower House, focusing on the Mid-Term Review of the 2001-2005 Eighth Malaysia Plan (8MP).

Mahathir, who will retire Saturday after leading the nation for22 years, said that the country has achieved credible economic growth despite being adversely affected by the volatile global economy during the first three years of the 8MP.

In tabling the motion, the Prime Minister said that the policy focus of the Mid-Term Review includes: reinforce macroeconomic fundamentals; bolster economic resilience to better withstand shocks; retool the economy to enhance its competitiveness; reactivate private investment in particular local sources to assume its role as the engine of growth and venture into new areas of growth.

The prime minister also cited other measures as accelerate the transition from low technology and labor intensive economy to one that is high technology and knowledge-based; increase supply of quality human resources to meet the demands of an economy that is moving to higher value added activities; develop a more equitable society to ensure everyone benefits from development; promote an exemplary value system compatible with high achievement by all communities; and enhance international cooperation for prosperity.

Mahathir said that the first three years of the 8MP have been exceptionally challenging for Malaysia due to unforeseen circumstances. It began with the slowdown in the global economy caused by the downturn of the US economy and collapse in world electronics demand.

This was aggravated by the Sept. 11 incident in US in the same year and after a short breather in 2002, the events in the first half of this year, particularly the invasion of Iraq and the Severe Acute Respiratory Syndrome (SARS) outbreak have again negatively affected economic recovery.

However, Mahathir said that the Malaysian economy is able to recover with growth this year estimated at 4.5 percent.

During the review period (2001-2003), the economy continued to expand and registered a real gross domestic product (GDP) growth of 3 percent even though the external factors and the large share of electrical and electronics goods, which accounts for around 70 percent of manufactured exports still prevails.

"We should take pride that our per capita income rose by 2.4 percent per annum from 12,843 ringgit (3379 US dollars) in 2001 to14,324 ringgit (3769 US dollars) in 2003."

Mahathir said that growth was achieved in an environment of stable prices and low unemployment while the external trade position of the country was also strong as reflected by the sizable surplus in the current account of the balance of payments every year.

By Sept. 30, 2003, Malaysian Central Bank's international reserves stood at 40.7 billion US dollars, up five percent over the previous month.

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