'Exports to China, India will shield Malaysian economy'

 

MALAYSIA'S economy is insulated from the global economic slowdown due to strong exports to China and India, says Second Finance Minister Tan Sri Nor Mohamed Yakcop.

He said even though exports to the US and Europe are weakening, exports to China and India on the other hand are strong and both countries are expected to register a gross domestic product growth (GDP) of between 7 and 9 per cent.

"Thus, Malaysia is confident of achieving a 3.5 per cent GDP growth next year though economies of Asian countries like Japan, Hong Kong and Singapore are already facing recession," Nor Mohamed told reporters in Selangor yesterday after launching the Young Entrepreneurs Association of Malaysia Forum.

Nor Mohamed was representing Deputy Prime Minister Datuk Seri Najib Razak.

The situation is already in dire state in the US which is badly affected with the unemployment rate expected to rise to 8 per cent from 6.5 per cent now.

Nor Mohamed said on top of this, the government has also announced the RM7 billion economic stimulus package which is expected to be fully distributed and implemented over the first quarter of next year.

Meanwhile, Nor Mohamed said financial leaders at the G20 summit on Saturday together with US President George W. Bush admitted that there were flaws and imperfections in the world's financial architecture.

"We told them during the 1997 regional economic crisis that the international financial architecture was not fair as no regulatory measures on hedge funds were causing much financial distress to many many countries.

"But our appeal then was rejected. Now 10 years on, they finally see that Malaysia's proposal then was right and they aspire to create an overhauled financial system," said Nor Mohamed.