Google

ASEANAFFAIRS
Sign up | Log in

    ASEAN PROFILES

  ASEAN KEY DESTINATIONS

Home  >>   Daily News  >>   Malaysia News  >>   Economy  >>   Malaysia outstrips global economy
NEWS UPDATES Asean Affairs                       29  August 2011

Malaysia outstrips global economy

Related Stories

August 23,2011
Only top scholars for Malaysia’s ETP

August 19,2011
Inflation in Malaysian economy

August 11, 2011
Malaysia tries to contain prices

August 9, 2011
Malaysian currency to strengthen

August 2, 2011
Malaysian consumer confidence up

July 28, 2011
Malaysian currency downgraded

Although weak economic sentiment and volatile equity markets have sapped investors' confidence in the state of the global economy, Malaysia may fare better driven by strong domestic consumption and further foreign inflows.

In an economic update report, AmResearch senior economist Manokaran Mottain ruled out the possibility of Malaysia's economy falling into a double-dip recession, saying robust levels of domestic demand along with ample liquidity will further drive growth, moving forward.

“Prospective gains from the Government's Economic Transformation Programme (ETP) will also provide additional support at the tail-end of the year, with some of the larger investments such as the MY Rapid Transit (MRT) project expected to be already under way in the last quarter of the year,” he said.

However, assuming a double-dip is averted, Manokaran said the short-term impact of an unstable global economy on Malaysia was certainly negative on the back of declining trade as well as external demand.

He said a sharp drop in the crude oil prices may also be a potential trigger for a gross domestic product (GDP) downgrade for Malaysia.

“While we expect a 5 percentgrowth rate to be achieved, given the current conditions, a negative would be the adverse impact of a very large drop in crude oil prices and any further delay in the ETP projects,” Manokaran said.

As a net exporter of oil, Malaysia still relies heavily on crude oil prices in terms of generating income for the country.

“As long as the full-year average lies between US$85 and US$90 a barrel, all is well within budget.

“While on a positive note, a sharp fall in crude oil may well mean a reduction in total subsidies spent by the Government, the net impact will however be detrimental to the Government's coffers and overall growth,” he said.

According to Manokaran, a possible quantitative easing in the United States would also lead to the appreciation of regional currencies, including the ringgit which is expected to rally further and appreciate beyond RM2.90 per US dollar.



Share 

Reach Southeast Asia!
10- Nations, 560- Million Consumers
And $1 -Trillion Market
We are the Voice of Southeast Asia Media Kit
The only Media Dedicated to Southeast Asia Advertising Rates for Magazine
  Online Ad Rates
Contact: marketing@aseanaffairs.com

Comment on this Article. Send them to  your.views@aseanaffairs.com

Letters that do not contain full contact information cannot be published.
Letters become the property of AseanAffairs and may be republished in any format.
They typically run 150 words or less and may be edited
 
or
submit your comment in the box below
Name

Name


Email

Email



1.  Verifier

1. Verifier

For security purposes, we ask that you enter the security code that is shown in the graphic. Please enter the code exactly as it is shown in the graphic.
Your Code
Enter Code



 
Today's  Stories    29  August  2011 Subsribe Now !
• Brunei has solar potential Subcribe: Asean Affairs Global Magazine
• China invests in Sulawesi Asean Affairs Premium
• Malaysia outstrips global economy
Research Reports
on Thailand 2007-2008

•Textiles and Garments Industry

•Coffee industry

•Leather and footwear industry

•Shrimp industry

 
• KL attracts Singapore investors
• Philippines to have “single window” customs
• Tony Tan wins close election
• Red shirts getting government positions

• Merger of Thai futures exchanges is unlikely


Asean Analysis    29  August  2011

Advertise Your Brand
• Aquino off to China Sponsor Our Events

Asean Stock Watch   29  August  2011

 
• Asean Stock Watch-August 29 p

ASEAN NEWS UPDATES      Updated: 04 January 2011

 • Women Shariah scholars see gender gap closing
• Bank Indonesia may hold key rate as inflation hits 7 percent

• Bursa Malaysia to revamp business rules
• Private property prices hit new high in Singapore
• Bangkok moves on mass transport
• Thai retailers are upbeat
• Rice exports likely to decline
• Vietnamese PM projects 10-year socioeconomic plan

ASEAN  ANALYSIS

This year in Thailand-what next?

AseanAffairs   04 January 2011
By David Swartzentruber      

It is commonplace in journalism to write two types of articles at the transition point between the year that has passed and the New Year. As this writer qualifies as an “old hand” in observing Thailand with a track record dating back 14 years, it is time take a shot at what may unfold in Thailand in 2011.

The first issue that can’t be answered is the health of Thailand’s beloved King Bhumibol, who is now 83 years old. He is the world's longest reigning monarch, but elaborate birthday celebrations in December failed to mask concern over his health. More

 

Home | About Us | Contact Us | Special Feature | Features | News | Magazine | Events | TV | Press Release | Advertise With us

Our Products | Work with us | Terms of Use | Site Map | Privacy Policy | Refund Policy | Shipping/Delivery Policy | DISCLAIMER |

Version 5.0
Copyright © 2007-2015 TIME INTERNATIONAL MANAGEMENT ENTERPRISES CO., LTD. All rights reserved.
Bangkok, Thailand
asean@aseanaffairs.com