November 2, 2010, Tuesday
THE state’s economy is projected to grow at 5.0 per cent next year, a result supported by the implementation of infrastructure projects under the SCORE initiatives and projects for rural infrastructures and utilities.
For 2010, the economy is expected to record a strong growth of 5.4 per cent, an increase from 4.5 per cent as announced in May, as a result of stronger economic activities during the first half of the year.
Chief Minister Pehin Sri Abdul Taib Mahmud, when touching on the state economic performance 2010 and next year’s prospect, stated that on the supply side, growth would be broad-based led by the service sector.
“The service sector is expected to grow at 7.2 per cent in 2010 with robust trading activities. For the first half of 2010, cargo-related activities at ports in the state increased by 11.6 per cent compared to the second half of last year.
“The air-transport segment grew as passenger volume for all principal airports statewide rose by an average of 9.5 per cent and the air cargo handled increased by 23.1 per cent during the same period. For 2011, this sector is expected to grow at 6.4 per cent,” he added when reading the 2011 State Budget on the first day of the 16th State Legislative Assembly yesterday.
Taib, who is also Finance Minister, mentioned that the manufacturing sector was estimated to grow at 4.5 per cent in 2010, after experiencing a contraction of 0.1 per cent in 2009. The growth was in tandem with the surge in global demand particularly of its liquefied natural gas (LNG) and wood based products.
He stated that the manufactured goods recorded double-digit growth in the first half of this year at 21.6 per cent. The state also anticipated the manufacturing sector to continue to do well in 2011 and was expected to grow at 4.5 per cent as the demand remained robust from economies within the region.
The construction sector is expected to grow at 6.5 per cent in 2010 in tandem with the implementation of the stimulus packages, RM1 billion Special Federal Allocations (SFA) and the remaining projects under the Ninth Malaysia Plan including the construction of the new Sabah-Sarawak gas pipeline and the Murum hydroelectric dam.
With the implementation of infrastructure projects under the 10th MP by 2011, the sector is anticipated to grow by 5.0 per cent.
Taib also highlighted that the mining and quarrying sector was estimated to grow at 3.2 per cent (2010) with increased production for natural gas, coal and silica sand in the first half of the year.
The production of natural gas grew by 17.4 per cent arising from increased demand from domestic petrochemical industries and major importing countries.
The industry was expected to grow at 3.0 per cent next year as the production of natural gas was anticipated to increase to meet the increasing demands from traditional markets.
“For the agriculture sector, it is expected to register favourable growth of 5.2 per cent in 2010 as a result of the rebound in commodity prices and improved global demand. With the increase in mature areas and the improvement in yields, the production of crude palm oil grew by 7.8 per cent during the first half of 2010.
“However, the sector is anticipated to grow slower at 4.3 per cent next year as global demand is expected to soften during the year,” Taib announced to the August House.