Malaysia seen posting 5pc 2012 GDP growth

KUALA LUMPUR: The Malaysian economy is expected to register a gross
domestic product (GDP) growth of five per cent this year, said
AmResearch Sdn Bhd.

The research firm said it was also confident
the country could sustain an additional growth of five per cent to six
per cent in the final quarter of 2011.

Its senior economist,
Manokaran Mottain, said Malaysia's economic growth would likely remain
robust despite the ongoing uncertainties in the global economy.

"We
hold our view that domestic demand, especially private consumption and
investment, would support GDP growth in the quarters ahead," he said in
the Economic Update here today.

He said the implementation of
the Economic Transformation Programme projects announced last year as
well as a further roll-out of new projects identified for this year
would sustain domestic economic momentum.

Manokaran said fiscal
policy played an important role in the country's performance, though the
government was still committed to prudent management without
destabilising growth momentum.

"Under Budget 2012, the
government is committed to reducing the fiscal deficit to 4.7 per cent
of GDP this year from an estimated 5.4 per cent in 2011," he said.

He
said lower inflation levels as well as favourable labour market
conditions would also help provide further support on the back of the
potential decline in external demand.

Manokaran said volatility
was expected to continue in both domestic manufacturing sector and
external demand in the coming months amid the ongoing crisis in the
eurozone. - BERNAMA