M'SIA'S GDP GROWTH 4-4.5 PCT IN Q2, SAYS BANK OF AMERICA ECONOMIST

KUALA LUMPUR, June 30 (Bernama)-- Malaysia's gross domestic product growth
for the second quarter is to expand between 4 per cent and 4.5 per cent due to a
global soft patch with manufacturing and exports weighing down growth.

"Most recent data showed exports are not doing well and we expect the figure
to be marginally lower for the second quarter," said Bank of America Merrill
Lynch economist Chua Hak Bin.

Chua said ambitious infrastructure and investment plans for Malaysia and
Indonesia might see more visible improvements in the second half but was far
from booming.

"As of now is not visible at all, as Malaysia's growth is unfortunately only
4.5 per cent and the way the second quarter is coming in, the exports are very
weak.

"It's more important now that the investment part kicks in because the
exports are not going to help for the next three to six months," he told a
media briefing on the economic outlook Thursday.

Chua said domestic demand drivers will become more important in Southeast
Asia in the second half, particularly investments, as global growth slows down.

"Consumer spending will be supported by ample liquidity and tight labour
market conditions," he said.

He said Southeast Asia will likely see more modest slowdown going into the
second half of this year on the back of weaker US and global growth.

On inflation, Chua said headline inflation was retreating in Indonesia and
Singapore but was increasing in Malaysia, Thailand, and the Philippines.

"We're forecasting in another +25 basis points policy rate hike for
Malaysia, Indonesia and the Philippines and +50 basis points for Thailand," he
added.
-- BERNAMA