MARKET DEVELOPMENT
Malaysia Needs To Boost Structural Reforms, Says World Bank
Malaysia Needs To Boost Structural Reforms, Says World Bank
25/06/2013 (Bernama) - Malaysia needs to accelerate structural reforms to ensure that its economy remains diversified and dynamic, said the World Bank.
The bank, in its Malaysia Economic Monitor: Harnessing Natural Resources which was released on Monday, said commodities like crude oil, natural gas, rubber and palm oil dominated Malaysia's trade.
The reforms were needed as demand for the commodities was dampened by weak growth in key export markets like China and Europe and an abundance of supply globally.
World Bank chief economist, Kaushik Basu, said Malaysia has done remarkably well over the last two decades.
"However, the coming onstream of new sources of global energy is likely to put downward pressure on several commodity prices.
"This will no doubt put restraints on growth on a commodity-exporting country like Malaysia," he said at the launch of the report in the capital, Monday.
Also present was Minister in the Prime Minister's Department, Senator Datuk Seri Abdul Wahid Omar.
Abdul Wahid said to strengthen competitiveness in the global market, the country needed to create a niche market in higher value-added downstream industries, particularly in the palm oil-based, rubber-based as well as oil and gas industries.
"In the agriculture sector, the National Commodities Policy outlined strategies to enhance downstream expansion and sustainability of palm oil industry to advanced oleo derivatives and food and health-based downstream expansion," he said.
The bank, in its Malaysia Economic Monitor: Harnessing Natural Resources which was released on Monday, said commodities like crude oil, natural gas, rubber and palm oil dominated Malaysia's trade.
The reforms were needed as demand for the commodities was dampened by weak growth in key export markets like China and Europe and an abundance of supply globally.
World Bank chief economist, Kaushik Basu, said Malaysia has done remarkably well over the last two decades.
"However, the coming onstream of new sources of global energy is likely to put downward pressure on several commodity prices.
"This will no doubt put restraints on growth on a commodity-exporting country like Malaysia," he said at the launch of the report in the capital, Monday.
Also present was Minister in the Prime Minister's Department, Senator Datuk Seri Abdul Wahid Omar.
Abdul Wahid said to strengthen competitiveness in the global market, the country needed to create a niche market in higher value-added downstream industries, particularly in the palm oil-based, rubber-based as well as oil and gas industries.
"In the agriculture sector, the National Commodities Policy outlined strategies to enhance downstream expansion and sustainability of palm oil industry to advanced oleo derivatives and food and health-based downstream expansion," he said.