Current global economic turmoil has affected Malaysia’s exchange traded fund (ETF), but the country’s leadership is adamant that no recession will be seen and the currency will rise.
Further, the central bank is ready to adjust monetary policy to support growth, reports Liau Y-Sing for Thomson Reuters.
Southeast Asian economies have been strengthened by crude and palm oil prices, but a sharp turnabout in these commodities will most likely induce a slowdown in an economy that heavily relies on trade. Forecasts for domestic economic growth is said to be 1.5% in 2009 with interest rates potentially lowered to below 3% from the current 3.5% by the second half of 2009.
To boost consumer confidence and spending, the government has reduced gasoline and rice prices, according to the Associated Press. Experts in consumer research warn that the government should only control critical items such as food and petrol and let the market regulate itself.