Malaysian Economy Can Grow as Much as 6%, Najib Says (Update1)
March 18, 2010, 4:01 AM EDT(Adds central bank decision in third paragraph.)
By Manirajan Ramasamy
March 18 (Bloomberg) -- Malaysia’s economy can expand between 5 percent and 6 percent this year, Prime Minister Najib Razak said in a speech in Kuala Lumpur today, faster than the government’s official forecast.
“We are sparing no efforts to achieve this growth and to help Malaysia achieve its goal to become a high-income nation,” he said. “I see signs that with hard work, a commitment to innovation and creativity,” Malaysia will be able to deliver that rate of growth this year, he said.
Malaysia’s central bank raised its benchmark interest rate for the first time in almost four years this month, saying the economy’s recovery is “firmly established” as the nation emerges from its first recession in a decade. The government had forecast in October that gross domestic product would expand 2 percent to 3 percent in 2010 after shrinking 3 percent in 2009.
The country’s exports may grow this year at twice the pace the government predicted earlier as the global recovery revives shipments of goods such as Sime Darby Bhd.’s palm oil and Intel Corp.’s computer chips, International Trade and Industry Minister Mustapa Mohamed said March 2. Overseas sales may increase as much as 7 percent, more than a previous forecast of 3.5 percent, he said.
“I believe and am hopeful that the worst of the global financial crisis is behind us, and we envision a good year ahead for Malaysia and beyond,” Najib said. Growth in the fourth quarter was helped by the government’s stimulus packages, he said.
--With assistance from Chan Tien Hin in Kuala Lumpur. Editors: Stephanie Phang, Lars Klemming
To contact the reporter on this story: Manirajan Ramasamy in Kuala Lumpur at rmanirajan@bloomberg.net
To contact the editor responsible for this story: Chris Anstey at canstey@bloomberg.net
