The government is confident that the country's economy will continue to be resilient, with a projected growth of between six and 6.5 percent in 2008.

In his budget speech today, Prime Minister Abdullah Ahmad Badawi said the economic growth will be driven by investments as well as private and public utilisation.

Investment in the private sector is expected to grow by 9.5 percent while public utilisation at 7.9 percent.

The per capita income is also expected to increase by 6.8 percent to RM23,864 with a purchasing power parity equivalent of USD14,206.

Service sector to grow

The service sector is also expected to grow by 8.6 percent led by tourism activities, transportation, finance and banking, real estate, education, healthcare and ICT (Information and Communications Technology).

Abdullah also said there is a recovering demand for electrical and electronic manufacturing. This is expected to contribute 3.8 percent to the manufacturing sector's growth.

The construction sector, including real estate, is expected to grow at 6.3 percent following increased civil works activity under the Ninth Malaysia Plan.

The agriculture sector is expected to grow by 3.5 percent following emphasis on farming and livestock.

"Our development philosophy which emphasises growth and distribution of wealth has enabled all citizens to enjoy the benefits of the country's rapid economic growth," concluded Abdullah.