ID :
28684
Wed, 11/05/2008 - 19:33
Auther :
Shortlink :
https://oananews.org//node/28684
The shortlink copeid
M'SIA NOT BADLY HIT BY GLOBAL ECONOMIC TURMOIL, SAYS ISIS
KUALA LUMPUR, Nov 5 (Bernama) -- The impact of the global economic turmoil
on the economy is not so serious at the moment as Malaysia has a relatively
resilient financial sector, according to the Institute of Strategic and
International Studies (ISIS) Malaysia.
Its director-general Dr Mahani Zainal Abidin said Malaysia has the
capacity
to bolster the economy if the global economic landscape continued to
deteriorate.
"Hopefully, the coordinated response from the real sectors by the world's
leading economies will arrest the global economic slowdown," she said at the CEO
Breakfast Forum on Current Global Economic Challenges hosted by rating agency
Malaysian Rating Corporation Bhd here Wednesday.
Mahani said China, Japan and South Korea have a crucial role to boost
regional growth.
"For example, if China slows down, there would be a lot of implications.
That is why the meeting of the G-20 on Nov 15 is very critical," she
said.
The G-20 leaders are expected to review progress being made to address the
current financial crisis as well as to agree on a common set of principles for
reforms of the regulatory and institutional regimes.
Among the areas of concerns now were the multiplier effects of the economic
stabilisation plan, risks of rising unemployment, impact of the sharp drop in
oil and palm oil prices, impact of the steep decline in the stock market and the
depreciating ringgit.
Investment (gross fixed capital formation) as a percentage of the gross
domestic product (GDP) deteriorated to 21.8 percent last year compared to the 30
to 40 percent levels achieved in the 1990, Mahani said.
Furthermore, Malaysia has the highest fiscal debt as percentage of GDP
among Asean nations and the fiscal position has not returned to surplus after
the 1998 crisis, she said.
Mahani said the stimulus package announced by Deputy Prime Minister Najib
Razak Tuesday would restore public and investors confidence to spend.
She said it would also boost the infrastructure and construction sectors as
well as increase disposable income.
"I expect there will be a series of measures, depending on the situation,
from time to time," she added.
-- BERNAMA
on the economy is not so serious at the moment as Malaysia has a relatively
resilient financial sector, according to the Institute of Strategic and
International Studies (ISIS) Malaysia.
Its director-general Dr Mahani Zainal Abidin said Malaysia has the
capacity
to bolster the economy if the global economic landscape continued to
deteriorate.
"Hopefully, the coordinated response from the real sectors by the world's
leading economies will arrest the global economic slowdown," she said at the CEO
Breakfast Forum on Current Global Economic Challenges hosted by rating agency
Malaysian Rating Corporation Bhd here Wednesday.
Mahani said China, Japan and South Korea have a crucial role to boost
regional growth.
"For example, if China slows down, there would be a lot of implications.
That is why the meeting of the G-20 on Nov 15 is very critical," she
said.
The G-20 leaders are expected to review progress being made to address the
current financial crisis as well as to agree on a common set of principles for
reforms of the regulatory and institutional regimes.
Among the areas of concerns now were the multiplier effects of the economic
stabilisation plan, risks of rising unemployment, impact of the sharp drop in
oil and palm oil prices, impact of the steep decline in the stock market and the
depreciating ringgit.
Investment (gross fixed capital formation) as a percentage of the gross
domestic product (GDP) deteriorated to 21.8 percent last year compared to the 30
to 40 percent levels achieved in the 1990, Mahani said.
Furthermore, Malaysia has the highest fiscal debt as percentage of GDP
among Asean nations and the fiscal position has not returned to surplus after
the 1998 crisis, she said.
Mahani said the stimulus package announced by Deputy Prime Minister Najib
Razak Tuesday would restore public and investors confidence to spend.
She said it would also boost the infrastructure and construction sectors as
well as increase disposable income.
"I expect there will be a series of measures, depending on the situation,
from time to time," she added.
-- BERNAMA
