The recalibration of Budget 2016 must be positive, market-friendly and meet the rakyat’s expectations, said Minister in the Prime Minister's Department Abdul Wahid Omar.

He said the management of the fiscal and monetary policies should enhance the government’s revenue, optimise development and operating expenditures, among others.

“The well-being of the rakyat will also be addressed, including the cost of living, managing unemployment and condusive environment for private sector growth.

“On the details, we will just have to wait for the announcement on Jan 28,” he told reporters after presenting his keynote address at the Standard Chartered Bank Malaysia Bhd’s Global Research Briefing 2016 ‘Retreat, Regroup, Rebound’ in Kuala Lumpur today.

Meanwhile, Standard Chartered Bank Bhd said the country’s gross domestic product (GDP) this year was expected to record a lower growth of about 4.7 percent, driven by consumption.

Its Regional Head of Research, South-East Asia, Global Research, Edward Lee, said a few factors had to be considered, among them, the impact of the global oil prices, goods and services, good employment rate as well as the moderation in China’s economic growth.

“Consumption is expected to contribute about 60-70 percent to Malaysia’s GDP and investments about 25 percent, like in 2015, which is reasonable,” he said.

Lee said Stanchart believed Bank Negara Malaysia may cut its overnight policy rate (OPR) in the second or the third quarter of this year due to tight fiscal positioning and lower GDP growth.

The OPR rate is currently at 3.25 percent.

- Bernama