Some of the best growth numbers are coming out of Asian countries. Malaysia’s economy reported a sizable economic expansion and also expects sustainable numbers in the future. The country-related exchange traded fund (ETF) may also benefit from the country’s shift to sustainable domestic growth.

Malaysia’s economy expanded 8.9% year-over-year in the second quarter, according to AFP. The Central Bank governor projects growth to exceed 6% for 2010 as sustained growth in domestic demand and continued growth in external demand fuel the economy. Malaysia’s economy is doing quite well, with strong fundamentals, low inflation and low unemployment, adds the Central Bank governor. [Why Malaysia ETF Is One of Asia’s Best.]

The slowdown in economic growth from neighboring Asian countries and the developed world may weigh down Malaysia’s exports and industrial output, report Shamim Adam and Michael Munoz for Bloomberg.

The International Monetary Fund (IMF) projects the economy will expand by 6.7% for the year and 5.3% next year. Malaysia has a target annual GDP growth of 5% to 6% between 2011 and 2020, says Prime Minister Najib Razak.

The IMF commented that the country’s monetary policies have been “appropriately recalibrated” for sustainable non-inflationary growth, according to thestar. The Fund also believes that Malaysia could benefit from a strengthening its currency so that the country can shift toward greater domestic demand as a growth driver.

For more information on Malaysia, visit our Malaysia category.

  • iShares MSCI Malaysia Index Fund (NYSEArca: EWM)

For full disclosure, Tom Lydon’s clients own shares of EWM.

Max Chen contributed to this article.

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