Malaysia: Painting a Rosy Economic Picture

A Blooberg report encapsulates the positivism of the political masters of Malaysia on growth potential for 2010.

The International trade minister said in an interview today (27 February 2010) that Malaysian export data for January, due out on March 5, could exceed expectations after the country emerged from its first recession in a decade.

“The preliminary figures are quite bullish as far as I am concerned,” he said,adding that,  “the January numbers, are beyond his personal expectations.”

Malaysia emerged from recession in Q4,2009 with gross domestic product rising 4.5 per cent from a year earlier. Asian economies are paving the way for a recovery from the worst global recession since the Great Depression, prompting central banks around the region to start removing some of the emergency steps they took to counter the slowdown.

Full-year exports will probably outperform the official government forecast of 3 per cent growth, said the  minister.  He also said a rosy growth of 5 per cent to 8 per cent is potentially achievable in 2010.

“From my interaction with the business community in electronics in the last quarter, there has been a very sharp revival,” he said. “Going forward, it appears 3 per cent is well within reach. Of course, we are talking about a low base.” [At least he knows this!]

Manufacturing Swells

Malaysia’s manufacturing industry grew 5.3 per cent in the fourth quarter from a year earlier and exports of goods and services gained 7.3 per cent, according to a central bank report on Feb. 24. Private consumption increased 1.7 per cent, it said.

Economic growth is likely to be “higher” than the government’s official forecast of between 2 per cent and 3 per cent this year, the trade minister , without giving a target.

Thailand also emerged from recession last quarter, while Singapore has raised its growth estimate for this year as the global recovery strengthens.

Looks like all is going to go 'great guns' this year, don't you notice the tone?