Malaysia Budget 2011

Malaysia's budget deficit in 2011 will shrink slightly to 5.4 percent of gross domestic product, but the total costs expected to rise, according to a government report presented before the budget today. The Govt took into account views from the public and private sector, focus groups, media, 1M blog and lab sessions. Najib pledged major infrastructure projects, financial market liberalization and the pre-election sweeteners in housing and transport in what will likely be his last budget before the polls tipped for next year.



Govt aims to achieve 6% growth in 2011, backed by private investment, expansion of 10.2%, private consumption is 6.3%, exports 6.7%. Will focus on efforts to transform the country into a developed, plus a high income economy plus sustainable development. 2011 budget will focus on efforts to turn the country into a developed and high income economy, inclusive and sustainable development, "Najib told the Dewan Rakyat.Malaysia move to reverse a sharp decline in foreign direct investment, which fell 81% to U.S. $ 1.4 billion in 2009 from U.S. $ 7.3billion in 2008.

Najib, who is also finance minister, is trying to spur employment and economic growth before they go to the polls, after being humiliated in the 2008 elections where the opposition scored unprecedented gains. A massively unpopular planned trip in tolls on a major highway, will also be frozen for the next five years. The deficit for 2011 is expected to slow further to 5.4% of GDP, against 5.6% in 2010.Net domestic borrowing by the federal government is expected to increase to RM51.1 billion in 2010 from RM36.5 billion a year.