Has Najib tuned the economy correctly?

(Malaysian Mirror) – Malaysia’s economy may yet surprise doomsayers with its durability. From a minus 5 percent contraction, many experts have pared back their negative forecast and at least one research house now thinks there is a chance growth will resume before the end of this year.

Prime Minister Najib Abdul Razak, who is also Finance Minister, is also optimistic. Although he did not indicate his latest forecast for third and fourth quarter economic growth or GDP, he says two huge stimulus packages totaling RM67 billion have begun making a positive impact that will rescue the nation from recession.

Jobs have been created, income was generated while the key construction sector grew 2.8 percent in March to June, higher than the 1.1 percent in the first quarter, the PM announced in a statement during the Hari Raya break.

"To date, a total of 83,939 projects have been awarded, of which 53,076 projects valued at RM6.07bil under the first stimulus package and the remainder under the second package which is designed to cover a period of two years," said Najib.

"This means that in 10 months, since the unveiling of the first package, 90 percent of projects identified have been awarded and are in various stages of implementation."

Comparative effect or real underlying growth?

Indeed, Malaysians may be in for a pleasant surprise but some experts still advise caution.

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