The country's economy is expected to make a recovery with a projected growth of between two and three per cent next year, the Dewan Rakyat was informed today.

Deputy Finance Minister Dr Awang Adek Hussin said the growth is achievable with the government's deficit financial position which is expected to improve to 5.6 percent of the gross domestic product (GDP) compared with 7.4 percent this year.

"The current account is expected to continue to register large surpluses amounting to RM91 billion in 2010," he said.

He was replying to a question from Charles Santiago (DAP-Klang) who wanted to know the government's plan to counter the economic downturn in the event that the world's economic recovery changes from U to W as predicted by several economists.

asli capital market summit 131107 awang adek Awang Adek ( left ) said for next year, the world's economy will expand and strengthen at a 3.1 percent rate with world trade expected to recover at a 2.5 percent rate from a contraction of 11.9 per cent last year.

"In line with the expanding economy and recovering global trade, as well as the immediate and effective implementation of two economic stimulus packages and a more relaxed monetary policy, the GDP is making a recovery, contracting at a lower rate of 3.9 per cent in the second quarter of 2009 after seeing a significant contraction of negative 6.2 percent in the first quarter," he said.

"With this improved development, for the whole of 2009, GDP is being projected at a negative 3.0 per cent, which will be better than the earlier estimate of between negative four to negative five as announced on May 28," he said.

To double income in 10 years

Awang Adek said the recently announced 2010 Budget, aimed at gearing the country towards a higher income economy, has been ensured to bring forth holistic and sustainable development with the people's welfare as priority.

malaysia stock exchange market klse 141008 05 It is to be the foundation for the formation of the new economic model, he said.

The efforts are expected to raise the per capita income by more than double in the next 10 years.

To a supplementary question from Dr Fong Chan Onn (BN-Alor Gajah)who wanted to know the government's efforts to attract back Malaysian experts working outside the country because of higher salary offers, Awang Adek said the country cannot be compared on a "dollar to dollar basis."

"Currently, we have a lower cost of living so there cannot really be a basis for dollar to dollar comparison," he said.

- Bernama