"We're not in a crisis": Wahid

KUALA LUMPUR: Minister in the Prime Minister's Department Datuk Seri Abdul Wahid Omar believes Malaysia is not in a crisis, saying the diversified and broader economy base will ensure the sustainability of the country's economy.
He stressed the government has been less dependent on oil revenues over the past few years by increasing revenue from other sources.
"There was a time when oil revenue was more than 40%, then down to 31% in 2013 and less than 30% last year," he said at the Economic Wrap-up 2014 here yesterday.
Wahid is of the view that the revised gross domestic product (GDP) target of 4.5% to 5.5% is still reasonable despite lower oil prices having a slight impact on the economy.
He said Malaysia could leverage on its trade with Asean countries in light of the implementation of the Asean Economic Community (AEC) by the end of 2015.
"We're excited about Asean, many multi-national companies have started to grow big in Asean, our belief is Asean has great potential," he noted.
He is hoping trade with Asean countries to account for one-third of Malaysia's total trade compared with the current 27%.
"As we move forward, we believe Asean has great potential, it has 600 million people, with USD2.4 trillion in terms of GDP and growth of 5% to 6% per annum," he said.
Wahid noted that the Malaysian economy is supported by strong fundamentals, with low inflation, favourable employment conditions, low external debt and ample international reserves.
"This gives Malaysia a better position to withstand more shocks," he said.
Wahid said US$50 to US$80 per barrel would be a "new normal level" for global oil prices and prices are not expected to rebound to US$100 per barrel anytime soon.
According to Wahid, some of the challenges for Malaysia include lower GDP, fiscal position and current account surplus.
Given that, he said the 11th Malaysian Plan (11MP), which is expected to be announced in June, will play a vital role in ensuring Malaysia to achieve the high income nation status by 2020.
He said 11MP will be developed using Malaysia National Development Strategy by enhancing inclusiveness, improving well-being, harnessing talent, pursuing green growth, strengthening the foundation for economic expansion and re-engineering economic growth.
Meanwhile, Wahid said the review of minimum wage is still in discussion stage, without committing to a timeline.
"Whenever we speak about minimum wage, the trade unions want higher level, (while) people representing the employers want the same level to be retained," he added.
The minimum wage policy is due for a review this year after the country started the full implementation from January 2014.
The current minimum wage is RM900 for Peninsular Malaysia and RM800 for Sabah and Sarawak. It includes both local and foreign workers.