ID :
150763
Tue, 11/23/2010 - 08:51
Auther :
Shortlink :
https://oananews.org//node/150763
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M'SIA WELL-POISED TO MEET SEVEN PCT GROWTH TARGET FOR 2010
By Santhia Thevi Panjanadan
KUALA LUMPUR, Nov 22 (Bernama) -- Malaysia is well-poised to meet its targeted seven per cent growth for this year having turned in an impressive third quarter 5.3 per cent gross domestic product expansion, thanks largely to the government's pragmatic expansionary policies bearing fruit.
With growth averaging more than 8.0 per cent in the first nine months of
this year based on 10.1 per cent growth in the first quarter, 8.9 per cent in
second quarter and 5.3 per cent in third quarter, the overall growth forecast
for 2010 is within grasp.
This would not have been possible if not for the pump-priming made possible
by the RM60.7 billion (US$19.58 billion) stimulus packages laid out by the
government in 2009 and last year, focusing on implementation and stimulating
businesses all-around.
It was a far-sighted and bold move by the government as a pre-emptive
measure to ward off the adverse effects of the global economic slowdown and was
now beginning to pay handsome dividends.
Prime Minister Najib Razak's liberalisation of 27 sub-sectors, easing
conditions in the financial services industry and Islamic banking and
stockbroking were also leading to a surge in economic optimism.
The Economic Transformation Programme including the emphasis on 12 National
Key Economic Areas along with 131 entry point projects plus concrete targets
already bearing fruit in terms of investments would further bolster growth.
The economy grew at a rapid pace of 9.5 per cent in the first half and the
third quarter growth was marked by sturdy domestic demand coupled with gross
inflows of foreign direct investments of RM8.9 billion.
"We expect continuous robustness in domestic demand and a moderate phase of
exports to help ensure the fourth quarter to see a growth of at least five per
cent," RAM Holdings Group Chief Economist Dr Yeah Kim Leng said.
He said Malaysia would continue its robust showing although the
sharper-than-expected moderation in the third quarter caused concerns over the
performance in the fourth quarter, largely due to continuous weakness in the
recovery of advanced economies.
"Broadly, we are in line with the forecasts," he told Bernama in an
interview today.
The Malaysian economy was more exposed to the external factors compared to
neighbouring countries, except Singapore, he said.
"As a result of weak global demand having hurt Malaysia's export more than
the other countries, we see strong support coming from domestic demand," he
said.
The encouraging news is that in the fourth quarter, consumer spending would
remain well supported by a low interest rate environment together with easy
credit conditions as well as higher income from firm commodity and asset prices
plus stable employment.
This year, growth contribution would largely come from the second stimulus
package as well as the completion of the spending of the Ninth Malaysia Plan.
"We expect growth generating from the positive effects of the Economic
Transformation Plan set to kick in next year as we do see signs of positive
investors receptivity to the various investment projects," said Dr Yeah.
Manokaran Mottain, AmBank Group's economist, said: "The average growth for
the last three quarters is 8.1 per cent which is still above the government's
full year forecast of seven per cent as well as our own in-house forecast of
eight per cent."
"If the economy can be sustained at the same phase, full year growth can
still outperform forecasts," he said.
"Looking at the current market conditions and other indications, the final
quarter could come slightly stronger than the third quarter," he said.
A positive wealth effect from the financial market which would contribute to
domestic demand is expected to support the fourth quarter growth.
A slight recovery in export activities due to China and India's demand would
also aid the fourth quarter growth.
-- BERNAMA
KUALA LUMPUR, Nov 22 (Bernama) -- Malaysia is well-poised to meet its targeted seven per cent growth for this year having turned in an impressive third quarter 5.3 per cent gross domestic product expansion, thanks largely to the government's pragmatic expansionary policies bearing fruit.
With growth averaging more than 8.0 per cent in the first nine months of
this year based on 10.1 per cent growth in the first quarter, 8.9 per cent in
second quarter and 5.3 per cent in third quarter, the overall growth forecast
for 2010 is within grasp.
This would not have been possible if not for the pump-priming made possible
by the RM60.7 billion (US$19.58 billion) stimulus packages laid out by the
government in 2009 and last year, focusing on implementation and stimulating
businesses all-around.
It was a far-sighted and bold move by the government as a pre-emptive
measure to ward off the adverse effects of the global economic slowdown and was
now beginning to pay handsome dividends.
Prime Minister Najib Razak's liberalisation of 27 sub-sectors, easing
conditions in the financial services industry and Islamic banking and
stockbroking were also leading to a surge in economic optimism.
The Economic Transformation Programme including the emphasis on 12 National
Key Economic Areas along with 131 entry point projects plus concrete targets
already bearing fruit in terms of investments would further bolster growth.
The economy grew at a rapid pace of 9.5 per cent in the first half and the
third quarter growth was marked by sturdy domestic demand coupled with gross
inflows of foreign direct investments of RM8.9 billion.
"We expect continuous robustness in domestic demand and a moderate phase of
exports to help ensure the fourth quarter to see a growth of at least five per
cent," RAM Holdings Group Chief Economist Dr Yeah Kim Leng said.
He said Malaysia would continue its robust showing although the
sharper-than-expected moderation in the third quarter caused concerns over the
performance in the fourth quarter, largely due to continuous weakness in the
recovery of advanced economies.
"Broadly, we are in line with the forecasts," he told Bernama in an
interview today.
The Malaysian economy was more exposed to the external factors compared to
neighbouring countries, except Singapore, he said.
"As a result of weak global demand having hurt Malaysia's export more than
the other countries, we see strong support coming from domestic demand," he
said.
The encouraging news is that in the fourth quarter, consumer spending would
remain well supported by a low interest rate environment together with easy
credit conditions as well as higher income from firm commodity and asset prices
plus stable employment.
This year, growth contribution would largely come from the second stimulus
package as well as the completion of the spending of the Ninth Malaysia Plan.
"We expect growth generating from the positive effects of the Economic
Transformation Plan set to kick in next year as we do see signs of positive
investors receptivity to the various investment projects," said Dr Yeah.
Manokaran Mottain, AmBank Group's economist, said: "The average growth for
the last three quarters is 8.1 per cent which is still above the government's
full year forecast of seven per cent as well as our own in-house forecast of
eight per cent."
"If the economy can be sustained at the same phase, full year growth can
still outperform forecasts," he said.
"Looking at the current market conditions and other indications, the final
quarter could come slightly stronger than the third quarter," he said.
A positive wealth effect from the financial market which would contribute to
domestic demand is expected to support the fourth quarter growth.
A slight recovery in export activities due to China and India's demand would
also aid the fourth quarter growth.
-- BERNAMA
