Government spending in Malaysia hinders economic growth, housing sector key culprit.
The study looked at how government spending affects economic growth in Malaysia from 1970 to 2014. They split government spending into different categories like housing, education, defense, healthcare, and more. Using a statistical technique called OLS, they found that overall government spending had a negative impact on economic growth. Specifically, only housing and development spending had a significant negative effect on growth, while education, defense, healthcare, and operating expenses did not show any significant impact. This suggests that policymakers in Malaysia may need to rethink how they allocate government funds to boost economic growth.