Posting a write-up from Bloomberg news:
Malaysia’s Economic Growth Probably Weakened as Exports Slowed
Media : Bloomberg
Story By : Stephanie Phang
Feb. 27 (Bloomberg) — Malaysia’s economy probably grew at the slowest pace in a year in the fourth quarter as exports eased amid faltering demand from markets such as the U.S., and holidays curbed production at factories.
Malaysia’s $147 billion economy expanded 5.6 percent in the three months ended December from a year earlier after gaining 5.8 percent in the third quarter, according to the median forecast of 21 economists surveyed by
Bloomberg News. The data is due at 6 p.m. in Kuala Lumpur tomorrow.
“Production as well as exports declined significantly in the fourth quarter and this will definitely affect growth,” said Imran Nurginias Ibrahim, an economist at MIDF Amanah Investment Bank in Kuala Lumpur. “Slower external demand will affect output and the manufacturing sector” this year.
Slowing growth in the U.S., Malaysia’s largest overseas market, is curbing demand for goods such as Intel Corp. semiconductors and Dell Inc. notebook computers that are produced in Southeast Asia’s third-largest economy. The
pace of expansion in the U.S. may ease to 2.7 percent this year from 3.4 percent in 2006, the White House said Feb. 5.
Cooling global growth is also hurting other Asian electronics exporters. South Korea’s government expects growth to ease to 4.5 percent this year
from 5 percent in 2006 due to a slowdown in global growth. Exports, which account for about two- fifths of South Korea’s economy, may rise at the slowest rate in five years in 2007, the commerce ministry said last month.