The country's economy is expected to expand between two and three percent next year with all sectors of the economy projected to record positive growth, Prime Minister Najib Abdul Razak said today.

Najib, who is also the finance minister, said the mining sector was forecast to achieve a 1.1 percent growth, manufacturing 1.7 percent, agriculture 2.5 percent, construction 3.2 percent and the services sector, remaining the main driver, 3.6 percent.

NONE Economic growth would be supported by private consumption at 2.9 percent and private investment recovering 3.4 percent, he said when tabling the 2010 Budget in the Dewan Rakyat.

In addition, he said, the rebound in exports at 3.5 percent was expected to contribute towards economic growth.

He said inflation remained low, between 1.5 percent and 2.5 percent, and unemployment at below four per cent.

Per capita income of the people was projected to increase 2.5 percent to RM24,661 and income in terms of purchasing power parity to US$13,177.

On the development of the two economic stimulus packages totalling RM67 billion launched in November last year and March this year, he said more than 48,000 projects were completed and almost 40,000 projects were being implemented as at Oct 16 last year.

Implemantation on schedule

Najib said the implementation of the packages was on schedule and had prevented the economy from sliding into a deeper recession.

"These stimulus packages are among the biggest and comprehensive in terms of value and coverage compared with other countries," he said.

Malaysia, he said, now had to shift to a new economic model based on innovation, creativity and high-value added activities in order to remain relevant in a competitive global economy.

The prime minister said innovation was an important national agenda and the government would transform the country through a comprehensive innovation process.

It comprises innovation in public and private sector governance, societal innovation, urban innovation, rural innovation, corporate innovation, industrial innovation, education innovation, healthcare innovation, transport innovation, social safety net innovation and branding innovation.

Part of the innovation initiative was being implemented through measures such as the 1Malaysia Concept, National Key Results Area (NKRAs), Key Performance Indicators (KPIs) and a new economic model.

"The government is committed and serious in undertaking total innovation to elevate the nation to a more advanced economy. Innovation Leadership for 1United, Innovative Malaysia," he said.

- Bernama

Najib's budget speech