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ET3-P1 Private Investment Growth Rate

ET3-P1 Growth Rate of Private Investment
Definition

The growth rate ofprivate investment refers to the change in total domestic investment in the overall amount of private investment in the current year compared to the base year.

Justification
Private investment plays an important role in generating economic growth. This is in line with the government's intention to create an economy led by the private sector. It is divided into domestic direct investment (DDI) and foreign direct investment (FDI). Growth led by private investment means that the economy reduce its dependence on government funding, which is constrained by the need to strengthen country's fiscal position .

During the period of the Ninth Malaysia Plan, it is noted that private investment grew modestly by 2.0 % per year due to slow demand at home and abroad. Total investment at current prices amounted to RM356.1 billion. However, the government will continue to take advantage of robust expansion in private sector, particularly in spearheading the development of new growth areas. Investment in the economy will continue to be driven and led by the private sector.

Private investment encompasses 92% of the total investment in the NKEAs while public funding is only 8%. This is a significant increase from the 37% share of private investment in 2008 and is in line with the private sector growth rate of 12.8% which is targeted in the 10th Malaysia Plan as well as the long-term target of 12.2% growth in 2020.

Sumber: Tenth Malaysia Plan and the Economic Transformation Programme, 2010

Data Source
  • Local Authorities
  • EconomicsPlanning Unit, Prime Minister's Department 
  • Malaysian Industrial Development Authority (MIDA)
Details

A.   Value of private investment(RM) for current year.

B.   Value of private investment(RM) inbase year.
Formula Standars Score Standars Target

ET3 – P1 = 1/n log (A/B) x 100

Di mana:

AValue of private investment(RM) for current year.

B = Valueof private investment(RM) in base year.

 

 

>12.2% per year 

7% - 12.2% per year

 < 7% sper year 

3

2

1

 12.2%