Prime Minister Najib Razak (Source :Internet) Prime Minister Najib Razak on October 23 announced Malaysia's 2016 budget, highlighting five priorities to stimulate domestic economy and consumption.
Themed "Prospering the Rakyat (ordinary people)", the budget focuses on strengthening economic resilience; increasing productivity, innovation and green technology; empowering human capital; advancing Bumiputera (indigenous Malaysian) agenda; and easing the cost of living.
The nation is to allocate total 267.2 billion RM (63.32 billion USD), an increase from 2015’s revised allocation of 260.7 billion RM.
It is forecast that the economy will grow at 4.0-5.0 percent in 2016, compared with 4.5-5.0 percent this year, while exports is expected to gain 1.4 percent in 2016 after a drop of 0.7 percent this year.
Government debt limit will remain at 55 percent of GDP, with inflation seen at 2-3 percent, against 2.0-2.5 percent in 2015.
The Government allocates 1.2 billion RM (284.3 million USD) to the tourism industry as it targets 30.5 million tourists and an income of 103 billion RM (24.4 billion USD) next year.
Meanwhile, 17.1 billion RM (4.05 billion USD) will be channelled into the Defence Ministry. The sum includes the purchase of six Littoral Combatant Ships, Very Short Range Air Defence weapons system, armoured vehicles and the A-400M Airbus.
Latest technologies, such as the Unmanned Airborne System, will be procured in a bid to improve Malaysian forces’ intelligence, surveillance and reconnaissance capacity.-VNA
