Malaysia predicts 2013 economic growth at 4.5-5.5 percent

Malaysia targets to narrow its budget deficit to three percent of the gross domestic product by 2015 as it expects economy to grow by 4.5 to 5.5 percent next year from about five percent this year, a senior government official said ahead of the tabling of national budget on Friday. Last year's budget deficit was 4.8 percent of the GDP and is expected to remain above four percent this year. The official, who declined to be named, said the 2013 budget would be "mildly expansionary but fiscally responsible." Prime Minister Najib Razak had said that domestic consumption would give an impetus to growth in Malaysia amid slowing growth in China and volatile environment in the United States and Europe. Friday's budget would be Najib's last before an election due mid 2013. The government is committed to revamp the tax structure towards a consumption based regime when the public is ready for it, the official said. The budget would review of the subsidy system to reduce wastage and is said to include measures to strengthen the capital market, following the successful listing of two of the world's three biggest Initial Public Offerings in the country this year. Malaysia's economy has been growing healthily at an average of 5.8 percent during Najib's administration.