'Malaysia may post 4.3pc 2011 GDP growth'

Malaysia could record a 4.3 per cent gross domestic product (GDP) growth this year, says Chief Economist of Allianz Group, Prof. Dr. Michael Heise.

Its growth will be driven by very buoyant investment activity and robust private consumption, said Heise, who presented a new study on the economic outlook for Asia, here today.

Speaking at a seminar entitled "Where is the world economy
heading? Economic Outlook Asia", he said Malaysia's private consumption
will be encouraged by positive development in labour income and the low
unemployment figures.

He said GDP growth this year will be more
moderate compared with last year's 7.2 per cent growth, citing among
others the Japan's earthquake and tsunami disaster as well as declining world demand as factors for the lower projection.

He, however, added that the production losses sparked by interrupted supply from Japan will have a temporary setback on the Malaysian economy.

"If Japan bounces back strongly...it will possibly bring positive
impact on Malaysia's GDP in the third and fourth quarters...the 4.3 per
cent can be over shot," he said in response to a question on whether the
GDP forecast could go over the projected 4.3 per cent.


Meanwhile, Heise has also projected China's GDP will decrease to 9.3 per
cent this year from 10.3 per cent last year while India's GDP will
decline to 8.5 per cent from 10.3 per cent previously and Singapore's
GDP will fall to to 5.5 per cent from 14.5 per cent in 2010.

Indonesia,
meanwhile, has been projected to see a slight drop in GDP growth from
6.1 per cent last year to 6.0 per cent this year.

He also said Asia would continue to drive the world's economic growth.

Globally, the share of Asian emerging markets in global output has
increased from 10.4 per cent in 2000 to 18 per cent in 2010 (based on
current exchange rate).--Bernama