KL needs 7% growth until 2020

KL needs 7% growth until 2020

KUALA LUMPUR (Reuter): Malaysia's economy will have to grow by
at least 7 percent a year until 2020 if the country is to achieve
developed country status by then, Prime Minister Mahathir Mohamad
said yesterday.

"According to our calculations, to achieve our target of a
developed nation, the growth rate must continue to average at
least 7 percent until the year 2020," Mahathir said in a speech
to a multimedia conference.

Analysts have said Malaysia needs to grow by around eight
percent a year to achieve developed status by the year 2020.

Mahathir said the government expected the manufacturing
sector's contribution to gross domestic product would peak at
around 38 percent by about the year 2005.

Currently, the manufacturing sector contributes about 35
percent to GDP.

The government has officially forecast GDP growth of around
eight percent for 1997 and Finance Minister Anwar Ibrahim has
said growth could be even higher.

However, a Reuters poll last week showed average expectations
of GDP growth of 7.8 percent in 1997 and 6.6 percent in 1998.

Malaysia's annual GDP growth has topped 8 percent for almost a
decade.