KUALA LUMPUR - The economic, financial and fiscal reforms undertaken over the years have strengthened the domestic economy's resilience to weather shocks, said Prime Minister Datuk Seri Najib Tun Razak.
Najib, who is also Finance Minister, said the economy has diversified from being predominantly commodity-based to also being driven by manufacturing and services.
"While the external sector remains important, growth is increasingly driven by domestic demand. The nation's macroeconomic fundamentals are strong, including manageable inflation, favourable labour market conditions, healthy foreign reserves, current account surplus and high national savings.
"The sound banking system and well-developed capital market continue to have ample liquidity to support economic activity without disruption," he said in the preface of the 2015/2016 Economic Report released by the Finance Ministry in conjunction with the tabling of Budget 2016.
Najib said these positive factors coupled with the government's pro-growth and business-friendly policies place the economy on a steady growth trajectory besides providing a cushion against global uncertainties.
"Supported by sound fundamentals and an