Thursday, April 17, 2008

Malaysian economy will deteriorate in second-half of 2008: MIER

"Mohamed Fudzail" efudzail@gmail.com

KUALA LUMPUR (AFP) — Malaysia's economy would decline in the second-half of the year due to a downturn in the US economy with growth in 2008 expected to reach 5.4 percent, an independent think tank said Wednesday.


The Malaysian Institute of Economic Research (MIER) said the Malaysian economy could sustain its rate of growth in the first-half of 2008 "before cooling in the second-half."


"The fear is that the US turmoil is getting deeper and nobody is certain when it will bottom out," it said.


"We stick to our earlier growth forecast of 5.4 percent this year ... until there is clearer evidence that the economy has lost momentum," it said.


"It is likely that growth would remain sound in the first-half, but conditions would deteriorate in the second-half of 2008 as the Malaysian economy takes the hit from the knock-on effects," MIER added.


Last month the central bank said Malaysia's growth is expected to slow to 5.0-6.0 percent in 2008, down from 6.3 percent last year.


MIER warned that food prices would continue to rise and Malaysia would see a hike in inflation.


"Price pressures may persist with the rise in global prices of agriculture produce and the threat of imported inflation arising from higher world oil prices," it said.


Malaysia's annual inflation rate in February was 2.7 percent compared with 2.3 percent in January due to a strong rise in food prices. Bank Negara expects inflation for the year rise to 2.5-3.0 percent from 2.0 percent in 2007.


Anger over rising prices was also a major factor in the March elections which saw the ruling coalition lose a third of parliamentary seats and five states in its worst results in half a century.


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Daripada Abu Umarah iaitu al-Bara' bin 'Azib radhiallahu anhuma, katanya: "Kita semua diperintah oleh Rasulullah s.a.w. untuk melakukan tujuh perkara, iaitu meninjau orang sakit, mengikuti janazah, menentasymitkan orang yang bersin, menolong orang yang lemah, membantu orang yang teraniaya, meratakan salam dan melaksanakan sumpah."

(Muttafaq 'alaih)

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