All Sectors Set to Record Positive Growth in 2006

By Rajan Moses; Mustapha Kamil and others

ALL sectors are projected to record positive growth in 2006, with the

manufacturing and services areas leading the way.

The manufacturing sector is expected to grow at a faster rate following

the strengthening of global electronics demand and the continuing strong

pace of domestic economic activities.

The manufacturing sector is seen growing 4.9 per cent in 2006. New

developments include greater involvment in nanotechnology, biotechnology

and advanced manufacturing practices.

A projected 6.1 per cent growth in the services sector, meanwhile,

should be supported by continued expansion in activities such as

information and communication technology-related and business outsourcing

services, private healthcare and education services.

The agriculture sector will continue to expand by 5 per cent in 2006,

amid continued efforts to diversify and modernise the sector,

particularly the production of food commodities, to help reduce imports.

Continued investments in niche areas of the agriculture sector, in

particular aquaculture, seaweed, herbs, floriculture and ornamental fish,

are expected to help drive its growth.

Output of crude oil and gas is envisaged to rise in 2006 due to strong

demand and higher prices as well as capacity expansion in new oil and gas

fields.

Crude oil and natural gas output are projected to increase by 4.2 per

cent and 10 per cent respectively. As a result, growth of the mining

sector in terms of value added is expected to accelerate by 4.7 per cent

in 2006.

The construction sector is expected to stage a recovery next year,

growing by 3 per cent. The growth will be spurred by a turnaround in the

civil engineering sub-sector, following implementation of new

infrastructure projects under the Ninth Malaysia Plan.

Likewise, activities in the residential and non-residential subsectors

are to remain active, supported by sustained demand for houses and

purpose-built offices.