Disaster In Japan Will Not Jeopardise Malaysian Economy

KUALA LUMPUR (Bernama) -- The earthquake and tsunami that struck
Japan recently and the North African crisis will only have a minimal impact on
the Malaysian economy, said Second Finance Minister Ahmad Husni
Hanadzlah.

He said the government was optimistic it would still achieve its target
Gross Domestic Product (GDP) growth of six per cent this year despite the
temporary hiccup.

Ahmad Husni said economic development did not depend entirely on
international trade as the government was also aggressively involved in economic
transformation, via the involvement of the private sector, and domestic economic
activities.

He said Malaysia was also not solely dependent on Japan to source automotive
components as it could obtain alternative supply from Japanese regional centres
in China and South East Asia.

"Although a majority of automotive plants are temporarily closed in Japan
following the natural disaster, the regional centres can supply the required car
components to Malaysia," he told the House of Representatives Wednesday.

Ahmad Husni also said Malaysia's dependence on Japan for automotive spare
parts was already declining except for high-tech parts sourced for hybrid cars.

"The use of local components have increased up to 70 per cent especially in
the manufacture of the national car and this has reduced dependence on imported
parts from Japan," he added.