ID :
23504
Thu, 10/09/2008 - 16:28
Auther :
Shortlink :
https://oananews.org//node/23504
The shortlink copeid
M'SIA TO CONTINUE REGISTERING GROWTH, SAYS SECOND FINANCE MINISTER
From Minggu Simon Lhasa
DUBAI, Oct 9 (Bernama) -- Malaysia will continue to register positive growth this year and next year and is not heading for a recession, says Second Finance Minister Nor Mohamed Yakcop.
He, however said, while the government was confident of achieving a growth
of 5.7 percent this year, the 5.4 percent target for next year will have to be
recalculated because of the global financial turmoil.
"We believe we can weather this crisis although we cannot be unduly
complacent and have to be ever vigilant in the context of the daily changing
turmoil," he told Malaysian reporters Wednesday after a cocktail reception in
conjunction with the ongoing Cityscape Dubai event here.
Cityscape Dubai is the world's largest business-to-business international
real estate event.
Nor Mohamed also attended the Asean Finance Ministers Meeting held
here.
He said countries worldwide were going to be affected by
the global financial turmoil in some way, depending on the length and extent of
the recession in the United States and Europe.
He said that inflation is no longer a major concern for Malaysia.
While inflation was a major concern a few months ago, he said it was no
longer so now following the significant drop in the prices of
commodities.
Nor Mohamed also stressed that Malaysia did not experience a banking
crisis, being in a different environment from the U.S. and Europe because the
country's banking system remained strong with low non-performing loans and a
high risk weighted capital ratio.
The Malaysian economy, he said, was also now well diversified with exports
contributing less than 20 percent of the growth while domestic consumption and
investment have become a major engine of growth.
Nor Mohamed said Malaysian exports were now heading for more diversified
markets, with more goods going into China and India.
Exports to China have increased to nine percent of the total exports
compared to just two percent a few years ago, he said.
He was confident that both China and India will register high growth and
continue to import from Malaysia.
Nor Mohamed said what Malaysia needed now was to maintain the confidence
level and make sure that the social safety net was taking care of those who may
be vulnerable.
He said the current financial crisis also provided opportunities for
Malaysia, particularly in Islamic banking.
"At times like this, when funds from the Middle East are losing money in
the U.S. and Europe, they will be encouraged to come to Malaysia which is one of
the strongest Islamic banking centres in the world," Nor Mohamed said.
He said in addition to portfolio investment, Middle East investors could
also invest in development projects being undertaken in Malaysia instead of
buying iconic assets in the U.S. and Europe which have already lost much in
terms of value.
DUBAI, Oct 9 (Bernama) -- Malaysia will continue to register positive growth this year and next year and is not heading for a recession, says Second Finance Minister Nor Mohamed Yakcop.
He, however said, while the government was confident of achieving a growth
of 5.7 percent this year, the 5.4 percent target for next year will have to be
recalculated because of the global financial turmoil.
"We believe we can weather this crisis although we cannot be unduly
complacent and have to be ever vigilant in the context of the daily changing
turmoil," he told Malaysian reporters Wednesday after a cocktail reception in
conjunction with the ongoing Cityscape Dubai event here.
Cityscape Dubai is the world's largest business-to-business international
real estate event.
Nor Mohamed also attended the Asean Finance Ministers Meeting held
here.
He said countries worldwide were going to be affected by
the global financial turmoil in some way, depending on the length and extent of
the recession in the United States and Europe.
He said that inflation is no longer a major concern for Malaysia.
While inflation was a major concern a few months ago, he said it was no
longer so now following the significant drop in the prices of
commodities.
Nor Mohamed also stressed that Malaysia did not experience a banking
crisis, being in a different environment from the U.S. and Europe because the
country's banking system remained strong with low non-performing loans and a
high risk weighted capital ratio.
The Malaysian economy, he said, was also now well diversified with exports
contributing less than 20 percent of the growth while domestic consumption and
investment have become a major engine of growth.
Nor Mohamed said Malaysian exports were now heading for more diversified
markets, with more goods going into China and India.
Exports to China have increased to nine percent of the total exports
compared to just two percent a few years ago, he said.
He was confident that both China and India will register high growth and
continue to import from Malaysia.
Nor Mohamed said what Malaysia needed now was to maintain the confidence
level and make sure that the social safety net was taking care of those who may
be vulnerable.
He said the current financial crisis also provided opportunities for
Malaysia, particularly in Islamic banking.
"At times like this, when funds from the Middle East are losing money in
the U.S. and Europe, they will be encouraged to come to Malaysia which is one of
the strongest Islamic banking centres in the world," Nor Mohamed said.
He said in addition to portfolio investment, Middle East investors could
also invest in development projects being undertaken in Malaysia instead of
buying iconic assets in the U.S. and Europe which have already lost much in
terms of value.
