MALAYSIA'S ECONOMY EXPECTED TO REGISTER GROWTH NEXT YEAR

KUALA LUMPUR, Nov 11 (Bernama) -- Malaysia's economy is expected to make
a recovery with a projected growth of between two and three per cent next year,
the House of Representatives was informed Wednesday.

Deputy Finance Minister Dr Awang Adek Hussin said the growth is achievable
with the government's deficit financial position which is expected to
improve to 5.6 per cent of the gross domestic product (GDP) compared with 7.4
per cent this year.

"The current account is expected to continue to register large surpluses
amounting to RM91 billion (US$26.9 billion) in 2010," he said.

He was replying to a question from Charles Anthony Santiago, an opposition
member of parliament (MP) who wanted to know the government's plan to counter
the economic downturn in the event that the world's economic recovery changes
from U to W as predicted by several economists.

Awang Adek said for next year, the world's economy will expand and
strengthen at a 3.1 per cent rate with world trade expected to recover at a 2.5
per cent rate from a contraction of 11.9 per cent last year.

"In line with the expanding economy and recovering global trade, as well as
the immediate and effective implementation of two economic stimulus packages and
a more relaxed monetary policy, the GDP is making a recovery, contracting at a
lower rate of 3.9 per cent in the second quarter of 2009 after seeing a
significant contraction of negative 6.2 percent in the first quarter," he said.

"With this improved development, for the whole of 2009, GDP is being
projected at a negative 3.0 per cent which will be better than the earlier
estimate of between negative four to negative five as announced on May 28," he
said.

Awang Adek said the recently announced 2010 Budget, aimed at gearing the
country towards a higher income economy, has been ensured to bring forth
holistic and sustainable development with the people's welfare as priority.

It is to be the foundation for the formation of the new economic model, he
said.

The efforts are expected to raise the per capita income by more than double
in the next 10 years.

To a supplementary question from Dr Fong Chan Onn, another MP who wanted to
know the government's efforts to attract back Malaysian experts working outside
the country because of higher salary offers, Awang Adek said the country cannot
be compared on a "dolar to dolar basis."

"Currently, we have a lower cost of living so there cannot really be a basis
for dollar to dollar comparison," he said.

-- BERNAMA