NEW ECONOMIC MODEL SEEN AS CATALYST FOR HIGH GROWTH

PENANG (Malaysia), May 14 (Bernama) -- The reforms in fiscal policy to be
implemented under the New Econmic Model (NEM) in June this year is seen as a
catalyst for high economic growth, according to an economist.

OCBC Ltd's economist and head of treasury research, Selena Ling, said the
reforms which covered various aspects and fields were eagerly awaited.

Ling said that changes such as attractive incentives for foreign
investments, particularly in the biotechology industry, will help the government in
attracting more investments to the country.

"The link between incentives and healthy changes in the economy will directly
improve the budget deficit this year," she told reporters after presenting a
paper on the economic outlook at a seminar here Friday.

Ling said the country's economy is expected to recover this year with the
increase in exports and domestic demand.

"The country's exports are moving at a fast pace and the export of
commodities is almost back to the level before the fall in 2008," she said.

Ling also said that the strength of the ringgit and global economic growth will
lead to an increase in private investments.

She said the changes expected in fiscal policy will support a rise in demand in
the job market, resulting in a drop in the country's unemployment rate.

-- BERNAMA



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