According to figures announced by the Malaysian Institute of Economic Research (MIER), Malaysia is predicted to hit 5% growth in 2011, based on gross domestic product (GDP) results for the first three quarters of 2011.
At the recent National Economic Outlook Conference, Dr Zakariah Abdul Rashid, executive director of the MIER stated that if the government can maintain a similar performance for the fourth quarter, Malaysia’s economy will be able to achieve the earlier estimated 5 to 5.5%.
“It is possible. The average for the first three quarters was 5.1 Per cent,” Rashid commented. “Also, the government has yet to finish its plan to increase expenditure.”
In Q3 the Malaysian economy had grown by 5.8% According to figures released by the Bank Negara Malaysia. Growth for Q1 and Q2 was revised to 5.2% and 4.3% respectively.
Despite the global economies uncertainty, a number of Eastern economies like The Philippines, China and Indonesia, though affected, have stayed strong.
Rashid also stated that external sectors have a negative effect on the Malaysian economy but domestic demand through the government’s policy initiatives will help to soften its impact.
“Private consumption will also remain healthy while private investment will be boosted by the implementation of projects under the ETP,” Rashid continued.
Earlier predictions by the Malaysian Institute of Economic Research indicated that gross domestic product growth for 2011 and 2012 to be at 4.6% and 4.2%.
There are clear signals that Malaysia is a country to watch for investment, with many investors looking to see how the country performs for the remainder of the year.
Experience International a market leading London based overseas property investment company has stated that they anticipate expanding their current range of investments to include property investment opportunities in Malaysia in early 2012.