Malaysia's Economy To Grow By 4.2 Pct This Year, Says Moody's

KUALA LUMPUR, Feb 15 (Bernama) -- Malaysia's economy is expected to expand by 4.2 per cent this year, driven by resilient household consumption and investment, says Moody's Analytics associate economist Fred Gibson. He said the weakening global economy and soft landing in powerhouse economies namely India and China will weigh on Malaysia's export-oriented industries. "Export growth is moderating, a trend that will extend through early 2012," he said in a research note Wednesday. Resilient household consumption and investment will help offset more moderate growth ahead, he added. According to Gibson, the Malaysian economy is estimated to grow a robust 4.5 per cent year-on-year (y-o-y) in the fourth quarter (Q4) of 2011. The solid gross domestic product (GDP) growth in Q4 was supported by buoyant industrial production, burgeoning consumer spending and healthy credit growth that boosted domestic demand, despite global turbulence. "We expect household consumption to play a big part in Malaysia's impressive Q4 expansion where consumer goods imports grew 25 per cent y-o-y on average," he said. The sustained demand for the country's hard commodity export, particularly liquefied natural gas, helped cushion the moderating export sector, he added. "Nominal exports grew by 9.8 per cent y-o-y in the final quarter of 2011, down from the third quarter's 11.4 per cent," Gibson said. -- BERNAMA