ID :
210900
Mon, 10/03/2011 - 14:11
Auther :
Shortlink :
https://oananews.org//node/210900
The shortlink copeid
'REFORM MEASURES CRITICAL TO UNLEASH MALAYSIA'S ECONOMIC POTENTIAL'
KUALA LUMPUR, Oct 3 (Bernama) -- icapital.biz Bhd is "tentatively
optimistic" of the Malaysian economy which has so far remained resilient.
Its managing director, Tan Teng Boo, said Malaysia's economic growth had been sustained by exports of commodities and this was not sustainable in view of the impending global economic downturn.
In a severe global economic downturn, he said, the country would not be spared.
It was reported that commodity prices tumbled in September due to the weakening global stock markets amid deepening eurozone debt crisis and fears of an impending global economic recesssion.
"As the economy would be affected by troubles in the global economy and markets, the Malaysian stock market could be in a bearish mood for the next 12 to 18 months," Tan said.
Nevertheless, he said: "The Malaysian economy has potential and it needs reform to unleash the sleeping economic giant.
"The successful implementation of reform measures initiated by Prime Minister Najib Razak is extremely critical to unleash Malaysia's economic potential and boost its competitiveness."
In a media briefing here on Monday, he said the reform measures to turn around Malaysia's economy would face major opposition.
"Another worrisome factor is that the high budget deficit in Malaysia is not at comfortable level," he added.
In the longer term, Tan said, it was the manufacturing sector that would drive the Malaysian economy.
"The weakening of the ringgit will bring relief to manufacturers," he said.
He said the tourism sector was another potential in the Malaysian economy.
Tan also said that with economic conditions in Europe and the US facing turbulent times, people were looking at developments in China.
"However, China as well as many parts of the emerging economies are facing inflation pressures due to rising prices of food," he said.
The only country that had been able to manage inflation well was Indonesia, he said and named the Philippines and Thailand as other emerging economies that have potential.
-- BERNAMA
optimistic" of the Malaysian economy which has so far remained resilient.
Its managing director, Tan Teng Boo, said Malaysia's economic growth had been sustained by exports of commodities and this was not sustainable in view of the impending global economic downturn.
In a severe global economic downturn, he said, the country would not be spared.
It was reported that commodity prices tumbled in September due to the weakening global stock markets amid deepening eurozone debt crisis and fears of an impending global economic recesssion.
"As the economy would be affected by troubles in the global economy and markets, the Malaysian stock market could be in a bearish mood for the next 12 to 18 months," Tan said.
Nevertheless, he said: "The Malaysian economy has potential and it needs reform to unleash the sleeping economic giant.
"The successful implementation of reform measures initiated by Prime Minister Najib Razak is extremely critical to unleash Malaysia's economic potential and boost its competitiveness."
In a media briefing here on Monday, he said the reform measures to turn around Malaysia's economy would face major opposition.
"Another worrisome factor is that the high budget deficit in Malaysia is not at comfortable level," he added.
In the longer term, Tan said, it was the manufacturing sector that would drive the Malaysian economy.
"The weakening of the ringgit will bring relief to manufacturers," he said.
He said the tourism sector was another potential in the Malaysian economy.
Tan also said that with economic conditions in Europe and the US facing turbulent times, people were looking at developments in China.
"However, China as well as many parts of the emerging economies are facing inflation pressures due to rising prices of food," he said.
The only country that had been able to manage inflation well was Indonesia, he said and named the Philippines and Thailand as other emerging economies that have potential.
-- BERNAMA
