SERVICES SECTOR PROVIDED SUPPORT TO OVERALL ECONOMY IN 2009

KUALA LUMPUR, March 24 (Bernama) -- The services sector expanded by 2.6 per
cent in 2009, providing support to the economy during the global financial
crisis.

Consequently, the sector's share to gross domestic product (GDP) increased
to 57.4 per cent from 55 per cent in 2008, Bank Negara Malaysia (Malaysian
central bank) said in its
Annual Report 2009 released Wednesday.

It said the sector benefited from the resilient domestic demand, which was
supported by the government's fiscal stimulus and an accommodative monetary
policy.

"After registering a marginal decline of 0.2 per cent in the first quarter
of 2009, the services sector turned around to record an expansion of 1.6 per
cent in the second quarter," the report said.

The sector continued its positive growth path to expand by 4.3 per cent in
the second half of 2009 from 0.8 per cent in the first half.

While most services sub-sectors followed the same growth trend, those
largely dependent on trade and manufacturing activities, namely transport
and storage, and utilities, recovered at a slower pace.

The finance and insurance sub-sector recorded a moderate growth of 4.4 per
cent from 7.7 per cent in 2008, reflecting the subdued performance of domestic
demand especially in the first half of 2009.

The manufacturing sector faced a challenging start in 2009 as the sharp
decline in exports at end-2008 worsened further.

However, the contraction stabilised in the second quarter of 2009 and
conditions became more favourable towards the year-end, with production
recording a positive growth in the fourth quarter of 2009.

-- BERNAMA



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