Malaysia’s economy grows 5.1% in fourth quarter

The_Petronas_Twin_Towers_in_Kuala_Lumpur_(Malaysia)

Malaysia’s economy grew a solid 5.1 per cent in the fourth quarter of last year as exports picked up, the central bank announced on Wednesday, as economists said rising inflation remained manageable.

Southeast Asia’s third largest economy expanded 4.7 per cent for the full year, down from 5.6 per cent for 2012 but in line with the government’s forecast, Bank Negara said in a press release.

Fourth quarter growth was “supported by private sector demand and improvement in exports”, it said, adding growth was expected to stay on a “steady trajectory”.

Exports rose 2.4 per cent in 2013 year-on-year, picking up in the second half due to demand from Malaysia’s neighbours, as well as its largest trading partner China.

But following the government’s moves since September to cut fuel, sugar and other subsidies, which cost it billions and have led to a high debt, complaints of the rising cost of living have grown.

“While domestic demand is expected to moderate following the ongoing fiscal consolidation, the external sector is expected to benefit from the improving global conditions,” Bank Negara said.

Inflation stood at 3.2 per cent in December compared to the same month a year earlier. For all of last year it stood at 2.1 per cent compared to 2012.

Jeff Ng, a Singapore-based economist with Standard Chartered Bank, said inflation remained among the lowest in the region though it was expected to increase to 3.4 per cent this year.

“Cost is now an issue. But inflation still remains pretty manageable,” he told AFP.

Thousands protested in a rally on New Year’s eve against the price hikes.

Prime Minister Najib Razak, whose 57-year-long ruling coalition was re-elected in May with reduced support, has said cutting subsidies was “necessary” and low-income earners would continue to receive handouts to help them.

Malaysia has one of Asia’s highest debt-to-GDP ratios.

Malaysian critics say the government is mismanaging the economy and has failed in its pledge to fight endemic corruption.

 

 

 

Source : Channel News Asia | February 12, 2014

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About thomasdinnocenzi

Thomas D'Innocenzi is a highly accomplished, results-focused senior international executive with extensive experience in global sourcing and market development worldwide to meet evolving business needs. Tom has proven ability in implementing and managing profitable global sourcing operations worldwide. Extensive experience in international market development operations to accommodate rapid growth. Skilled in building top-performing teams, benchmarking performance, and restricting organizations to improve efficiency, productivity, and profitability. Experienced transition leader and change agent. As principal of Nova Advisors, LLC I’ve assembled an exemplary team that brings with them the knowledge and experience gained from starting up a Global Sourcing program with multiple Fortune 500 companies as well as the largest supplier network throughout the Asia-Pacific region. We have experience and expertise in more than a thousand medical and pharmaceutical products in manufacturing and sourcing at the best value. The right product, the right price point and the right branding fueled these successes that resulted in double-digit growth for top line sales and bottom line net margins for our customers. What sets us apart: • Our reach includes a large network of suppliers & manufacturers spanning 13 countries in Asia-Pacific region • We understand the manufacturing process and the business of the supplier and the buyer • Our company culture is based on quality assurance and our process is based on local quality control Our commitment is to be your partner offering the best products and services at the lowest cost. Contact me to discuss how we can make the global marketplace work for you. thomas@novaadvisors.com In addition, I am open to discussing opportunities in global sourcing, international marketing & sales, logistics and medical/pharma in Thailand, Vietnam, Malaysia, Philippines & Japan. Aside from my work I enjoy piano, astronomy, physics, and assisting my daughters with their studies. SPECIALTIES: Global Sourcing, Supply Chain Management, Business Development, Marketing, Logistics, Global Networking, Market Development, Healthcare Solutions, Pharmaceuticals, Medical Devices, Technology, Asia, Southeast Asia, US and Canada
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