Malaysia's Economy Strong And Flexible Enough To Face Global Slowdown - Bernama

KUALA LUMPUR, May 7 (Bernama) -- Malaysia's economic standing is strong and flexible enough to face an uncertain growth in the world economy following the subprime loan crisis in the US, a weakening dollar as well as inflationary pressure and increasing crude oil price, Second Finance Minister Tan Sri Nor Mohamed Yakcop said.

"Although the prospects of a slowdown in world economic growth will pose a risk to Malaysia's economic growth, its strong foundation is expected to contribute to its resilience and reduce the risks posed by the global challenges," he said during the Question and Answer session at the Parliament on Wednesday.

The minister was replying to a question from Alexander Nanta Linggi (BN-Kapit) who had asked on Malaysia's economic situation against the current world economy where the US dollar has depreciated, the price of crude oil has gone up and the Euro currency has appreciated.

Malaysia has projected a six percent economic growth for this year. Last year, the country's Gross Domestic Product grew by 6.3 percent.

Nor Mohamed said Malaysia's economic strength was in its flexibility.

"The manufacturing sector continued to show progress in increasing its value added chain, while the services sector has become an important contributor to the economic growth," he said, adding that the services sector had also expanded at a higher rate compared with the overall economic growth.

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