KUALA LUMPUR: sustained private investment growth is expected to continue to benefit the Malaysian economy, particularly through the more rapid technological progress and increase the productive capacity of the economy, according to Bank Negara Malaysia (BNM).
He said a big investment, especially in oil and gas sector in both upstream and downstream, is expected to produce technological advances that will contribute directly to the improvement of Malaysia's growth potential.
"The implementation of major infrastructure projects, such as public transportation, airports, ports and telecommunications, is also expected to increase the productive capacity of the economy indirectly through better connectivity, in Malaysia and other countries," it said in the 2012 annual report released today .
The central bank also detect a positive development in research and development expenses (R & D) of approximately 2011 accounts for 0.8 percent of gross domestic product (GDP) compared to 2006 accounted for 0.6 percent of GDP, with the potential to contribute to value-added activities higher.
The central bank said, with strong growth in the past year, the share of private investment has increased to 15.5 percent of GDP in 2012 than during the period 2001-2011 and the average account for only 11.8 per cent of GDP.
Private investment is growing strongly, driven mainly by strong profits, high capacity utilization in the manufacturing sector, access to finance, and a favorable investment climate, "it said.
Going forward, the central bank expects the underlying factors that will continue, thus providing strong support for private investment
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