MALAYSIA'S GDP GROWTH OF 5 PCT FOR 2010 POSSIBLE TO ACHIEVE, SAYS GOVERNOR

KUALA LUMPUR, Nov 21 (Bernama) -- Malaysia can achieve a five per cent gross
domestic product (GDP) growth next year driven by the encouraging global
economic performance and domestic demand, said Central Bank of Malaysia Governor
Dr Zeti Akhtar Aziz.

There are still no major setbacks in the external environment as the global
economy particularly the major economy is on a gradual recovery, she said during
a press conference Friday to announce the country's economic performance.

"The government has also accelerated the implementation of fiscal stimulus
earlier than scheduled which will generate higher volume of economic activity
and contribute to greater efficiency as well as higher productivity," she
said.

The structural change could also contribute to the growth as this
transition into the new areas would yield higher value added on domestic
economic activities.

"The five per cent is possible if we could achieve all those things," she
said, adding that the country's GDP was expected to see a positive growth in the
fourth quarter this year.

She, however declined to comment on the possibility of revising the growth
forecast for the year although the growth number turned positive in the fourth
quarter.

The government projected a contraction of 3.0 per cent in GDP for 2009.

On the unemployment trend, Zeti said BNM has seen improvement with less
retrenchments and more hiring activities compared with the major economies
where there have been large scale of unemployment.

"Locally, we believe there are new areas of growth in hiring at the moment
particularly in Islamic financial services sector which is set to continue
expanding following the new licences issuance coming on board soon," she
said.

Unemployment rates were at four per cent and 3.6 per cent in the first
quarter and second quarter resepectively.

On the ringgit, Zeti said the local currency was likely to appreciate
against other major currencies as the economic outlook improved.

"We do expect the ringgit to be on the upward trend as the economy improves.
However, we would like to see this happen in an orderly manner because
the underlying economic condition do not change very sharply and suddenly within
a short period of time.

"Therefore, it is likely to happen gradually," she said.

As for the overnight policy rate, Zeti said the existing interest rate of
2.0 per cent will continue to support the domestic economy.

-- BERNAMA