Malaysia Can Sustain Underlying Trend Of Steady Economic Growth, Says Zeti
KUALA LUMPUR, March 23 (Bernama) -- Malaysia has the potential to sustain its underlying trend of steady economic growth despite the more moderate global growth this year, says Bank Negara Governor Tan Sri Dr Zeti Akhtar Aziz.
"The growth will be supported by sound macro-economic fundamentals, continued access to financing in a ample liquidity environment and a resilient financial sector," she said in the Governor's statement in the Bank Negara Annual Report 2010 released Wednesday.
However, as a highly open economy, Dr Zeti said, the country would continue to be affected by the spill-over effects of global developments which include the effects of developments and policies being pursued by advanced economies, geopolitical tensions in the Middle East and the tragic developments in Japan.
Nevertheless, she said, Malaysia has built its capacity to cope with such challenges having faced the Asian financial crisis 12 years ago.
"The strengthening of our economic structure and the financial system, enhancement of institutional arrangements and the improvement in our macro-economic fundamentals have increased the resilience of our economy," she said.
In an environment where the risk of more modest growth remains and that of higher inflation need to be managed, Dr Zeti said, monetary policy in 2011 has the flexibility to remain accommodative.
"Of importance is that the economy continues to remain on its current growth trajectory of a steady growth, she added.
In 2010, the Malaysian economy expanded by 7.2 per cent, with encouraging trends in private economic activities and continued improvements in employment conditions.
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