IMPROVING IPI SIGNALS ECONOMY IS STABILISING, SAYS MINISTER

KUALA LUMPUR, July 28 (Bernama) -- The Malaysian economy has shown signs of
stabilising, International Trade and Industry Minister Mustapa Mohamed said
Tuesday.

He said the magnitude and quantum of year-on-year declines in the overall
IPI as well as across the manufacturing and electricity sectors had diminished
in May 2009 as compared to May 2008.

"In 2008, Malaysia's economy fared relatively well, turning in a positive
growth of 4.6 percent despite the onset of the financial crisis and
deterioration in the global economic environment," he said at the ministry's
annual dialogue with industry subsector associations here.

"The government is following closely the developments in the global markets
where we do business. We are also actively monitoring the domestic situation at
home," Mustapa said.

On the wood and wood-based subsector, he said, Malaysia received RM135.6
million worth of investments for 14 projects between January and May this year.

Malaysia had also embarked on several initiatives including being
the first country to commence formal negotiations to conclude the voluntary
partnership agreement which would see Malaysian wood products having better
access to the European Union market.

On the machinery and equipment subsector, he said, exports for the
January-May period declined by 22.7 percent to RM7.5 billion from RM9.7 billion
in the same period last year.

In the first five months, 27 projects worth RM276.8 million were approved.
(US$1=RM3.53)
-- BERNAMA