| Malaysia
News Update - February 2003 |
| GDP
grew 4.2% in 2002 |
The
Malaysian economy grew 4.2% in 2002 after expanding 5.6% in
real terms in the fourth quarter, with the mining, manufacturing
and services sectors recording stronger growth, according
to the Statistics department. The revised growths of 1.3%
in the first quarter, 4.1% (second quarter) and 5.8% (third
quarter), Malaysia's economic growth averaged a robust 4.2%
for the year as a whole. |
| Bank
Negara: Growth prospects remain positive in 2003 |
The
growth prospects for Malaysia remain positive in 2003, despite
greater uncertainties in the global environment, says Bank
Negara. While the growth would hinge on the global economy,
it would also benefit from sustained domestic demand and expansion
in intra-regional trade.
"Growth in 2003 is expected to be supported by a modest world
economic growth, some pick-up in the global electronics industry,
firm commodity prices and stronger expansion in intra-regional
trade," it said. Bank Negara said the continued increase in
imports of intermediate goods indicated sustained export orders
into the first half of 2003. |
| PM to
announce new growth stimulus package at end-March |
Prime
Minister Datuk Seri Dr Mahathir Mohamad will announce by the
end of March 2003 the full details of a comprehensive growth
stimulus package aimed at repositioning the national economy
and sustaining economic growth. The Government is working
on measures to boost economic growth, including a contingency
plan to protect the economy from the adverse effects of an
impending US war against Iraq. |
| Jamaluddin:
No need to seek funds overseas for stimulus package |
The
government does not see the need to borrow from overseas to
fund the economic stimulus package, as there is enough liquidity
in the domestic market, Second Finance Minister Datuk Jamaluddin
Jarjis says.
"The issue is now is not about liquidity, as the government
enter the market from time to time not for specific exercise
but for the benchmarking of our (sovereign) ratings," he said.
The stimulus package is to address the structural issues relating
to the Malaysian economy and act as a buffer to the Malaysian
economy from the adverse effects of a global economic downturn
if war breaks out in Iraq. |
| Bank
Negara reserves at RM131.5b at end-Jan |
Bank
Negara’s international reserves increased by RM600 million
to RM131.50 billion or US$34.60 billion as at Jan 31. The
reserves position is adequate to finance 5.4 months of retained
imports and was 4.2 times the short-term external debt. |
