Published on: Thursday, March 21, 2013
Kuala Lumpur: The expansion in investments is expected to contribute to further narrowing in the current account surplus in the near term, says Bank Negara Malaysia.
The central bank said private investments have emerged as a major contributor to growth in recent years on account of strong corporate profits, high capacity utilisation, continued access to financing and the favourable investment climate.
In particular, major investments have been undertaken in the oil and gas, infrastructure, manufacturing and services sectors, it said in its 2012 Annual Report.
Bank Negara said private investments have also been spurred by the implementation of the Economic Transformation Programme, which has catalysed investments in new growth areas, high value-added industries and infrastructure.
In 2012, as investments strengthened while savings declined, the savings-investment surplus of the private sector narrowed, it said.
The bank said high level of savings by the corporate sector and households were attributable to two main factors. - Bernama