UBS EXPECTS M'SIAN ECONOMY TO GROW SIX PCT NEXT YEAR

KUALA LUMPUR, Nov 25 (Bernama) -- The Malaysian economy, which is in the
midst of recovery, is expected to record six per cent growth next year spurred
by rising consumer consumption, said an economist.

UBS Investment Research Managing Director and Deputy Head of Global
Economics Paul Donovan said consumer consumption was expected to grow 5.9 per
cent next year compared with 0.3 per cent, currently.

Saying that Malaysia would emerge as one of the leaders of growth in
Southeast Asia next year, he added that the growth momentum was evident with
government support expected to continue until the first-half of next year.

" It can be achieved with the government's continuous support, good external
and consumer demand," he told reporters at the UBS Media Rountable on Global
Macroeconomics Outlook 2009 here Wednesday.

Describing the global economic recovery pattern as "Nike Swoosh", he said it
was a normal V shaped recovery with two powerful forces, namely bank lending and
small businesses, pressuring the recovery.

" However, Malaysia will be able to rebound vigorously next year because
these problems are confined to Europe and the United States and will not affect
the economy here. Without these problems, strong growth will come through," he
said.

Previously, UBS had forecast that the Malaysian economy would grow between
five and 5.5 per cent next year.

Donovan said global economic recovery, particularly in the United States and
Europe, has been gradual as banking institutions restrict lending to small
businesses.

" Small businesses account for about 60 per cent of the European and United
States economy," he said, adding that loans growth was expected to improve in
the next six to nine months.

-- BERNAMA