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The Malaysian economy remains resilient amid persistent high world crude Its expansion has been in line with strong global growth, particularly Growth in the US remains favourable despite hikes in interest rates. In In Malaysia, the strong growth was driven by robust domestic demand and Growth was supported by favourable financing and stable labour market These factors, coupled with pro-business policies and political Real gross domestic product growth expanded at a strong pace of 5.9 Growth is expected to be stronger and broad-based in the second half of Strong domestic consumption and continue expansion in trade-related The global uptrend in demand for electronics will impact positively on Meanwhile, high commodity prices, in particular of rubber and palm oil, The monetary policy this year continues to emphasise growth with price Inflation edged up to 3 percent last year and 3.9 percent in the first However the rise in inflationary pressures was mitigated somewhat by the For 2006 as a whole, inflation is projected at 3.7 percent, after On the external front, Malaysia continued to record a trade surplus. With continued inflows of foreign capital, the overall balance of
\noil prices, rising inflationary pressures and monetary tightening, especially
\nin the major advanced economies.
\nin the US and Asia, despite earlier concerns associated with rising oil prices.
\nthe Asian region, growth continues to expand driven by strong domestic demand
\nand supported by increasing intra-regional trade.
\nfavourable export performance.
\nconditions, while the Government\u2019s strategic decision to abandon a fixed
\nexchange rate (ringgit versus the US dollar) for a managed float was well
\nreceived and further boosted investor and consumer confidence.
\nstability, continue to provide policies and political stability, continue to
\nprovide the enabling environment for the economy.
\npercent in the second quarter, after 5.5 percent growth in the first quarter of
\n2006. This is expected to continue in the coming quarters to average 5.8
\npercent for the year as a whole.
\n2006. With positive contribution by all sectors, led by services, manufacturing
\nand agriculture.
\nactivities are expected to support growth in the services sector, especially in
\nthe wholesale and retail trade, hotels and restaurants, transport, storage and
\ncommunication and financial services sub-sectors.
\nMalaysia\u2019s exports of electrical and electronic products, leading to a stronger
\ngrowth in manufacturing output.
\nare expected to boost output and generate higher income for smallholders and
\nfarmers as well as commodity-based companies.
\nstability, with the Government balancing the need to rein in inflationary
\npressure while ensuring a conducive environment for investment and business
\nactivities.
\nseven month of 2006, due to largely to higher administered retail prices of
\npetroleum products.
\nappreciation of the ringgit, which helped to lower the cost of imports.
\nfactoring in the Government\u2019s commitment to not rise further the retail prices
\nof petroleum products in the remaining months of the year and the modest impact
\nof the upward revision electricity tariffs.
\npayments should remain strong in 2006, further strengthening the nation\u2019s
\neconomic fundamentals as well as boosting investor confidence.