Malaysia to do well in 2012 despite slower growth

KUALA LUMPUR: Despite an uncertain international climate, Malaysia is set to put in another strong economic performance this year, says research consultancy Oxford Business Group (OBG).

While growth is not expected to hit the heights achieved in recent years, a rate of between 4.0 and 5.0 per cent would serve to keep Malaysia on the right track, it said in its latest country review.

In May, the United Nations Economic and Social Commission for Asia and the Pacific announced a forecast 4.5 per cent growth in 2012, down somewhat from 5.1 per cent last year and 7.2 per cent in 2010.

This, OBG pointed out, was broadly in line with most expectations. In March Bank Negara Malaysia forecast a growth of between 4.0 and 5.0 per cent while the International Monetary Fund put the figure at 4.0 per cent.

Prof Dr Mohamed Ariff Abdul Kareem, a professor at the Kuala Lumpur-based Global University of Islamic Finance, commented that Malaysia's economy would be driven both by private consumption at home and commodity exports.

Source: MOLE