Budget 2017 will strengthen economy amidst global slowdown: PM Najib

The government would also focus on industries reeling from the sluggish global economy which had impacted international trade.

"Thus, the planning process for the 2017 Budget has taken several measures to advance the economy with the aim of enhancing the peoples' prosperity in a fair and inclusive manner," Najib told Dr Tan Seng Giaw (DAP-Kepong) in the Dewan Rakyat here today.

Dr Tan asked about the current status of the economy and steps taken to counter the impact of external factors.

Najib, who is also Finance Minister, said Malaysia recorded a Gross Domestic Product (GDP) growth of five percent in 2015 which far exceeded that of Indonesia (4.8 percent), Thailand (2.8 percent) and South Korea (2.6 percent).

In fact, Malaysia's economic growth was far better than the global economic growth of 3.2 percent registered last year, he added.

Najib said the economy grew 4.1 percent in the first half of this year and was forecast to register a growth of between 4.0 and 4.5 percent in 2016.

The prime minister said this year's GDP growth was forecast lower than 2015's growth of 5.0 percent as global economic momentum had slowed down while Malaysia's imports had also decreased.

In addition, weakness in international markets coupled with Britain's exit from Europe and global uncertainties contributed to lower prices for crude oil, gas, palm oil and minerals.