Malaysia can achieve 5 to 6 percent growth next year - Wahid

Malaysia can achieve economic growth of five percent to six percent next year despite falling crude oil prices, said Minister in the Prime Minister's Department Datuk Seri Abdul Wahid Omar.

Abdul Wahid said the petrol subsidy removal effective Dec 1, 2014 and the Goods and Services Tax implementation from Apr 1, 2015, would further strengthen the government's fiscal position.

"The target growth of between five percent to six percent is achievable and according to a World Bank report, Malaysia's economy is projected to grow by 5.7 percent in 2014 and 4.7 percent in 2015," Abdul Wahid said at the launch of the World Bank's 11th Edition of the Malaysia Economic Monitor, December 2014: Towards a Middle Class Society' here today.

Also present were Country Director for South East Asia, East Asia and Pacific Region, Ulrich Zachau and World Bank Senior Country Economist for Malaysia, Frederico Gil Sander.

Abdul Wahid said the government was on track to reduce its budget deficit to 3.5 percent this year and meet its target of three percent in 2015.

"There will be policies to help the government achieve its budget deficit target but whatever drop in the revenue from oil and gas, there will be savings from subsidies elsewhere," he said.

Abdul Wahid said from January to September this year, Malaysia's current account surplus stood at RM41 billion.

He said the country would have current account surplus in 2015 and 2016.