Malaysia On Right Track To Attain High-Income Status By 2020, Says UOB Chief Economist

By Prem Kumar Panjamothy KUALA LUMPUR, March 20 (Bernama) -- Malaysia is on the right track to attain the high-income status by 2020 even though the current financial and economic shocks in the West are expected to slow down the growth of Asian countries, says an economist. United Overseas Bank (UOB) Ltd chief economist, Jimmy Koh, said the measures put in place by Bank Negara Malaysia (National Bank of Malaysia) during the Asian financial crisis in 1998, had positioned local firms in a state of preparedness against any kind of financial and economical shocks in future. "The 1998 crisis was a great lesson and template for Malaysia. In case the crisis continues, Malaysia knows what to do," he told Bernama, Tuesday. He said Malaysia's gross domestic product growth of 5.1 per cent in 2011 was a clear proof that the crisis had minimal impact on the economy. "This year, we expect the Malaysian economy to grow by between 3.9 and four per cent. Looking at how the global economy is performing, a four per cent growth for an open economy like Malaysia is not so painful, in fact it's impressive. "It's positive if compared to other economies in the world which are still suffering from the turmoil," Koh said. Koh said UOB expected the Japanese economy to expand by two per cent, Singapore (2.5 per cent), US (1.7 per cent) and the eurozone (1.4 per cent). "If you compare Malaysia's forecast to these countries, it is proven that the economy here is far more resilient than them. "Even though the figure forecast for Malaysia is low if compared with bigger economies in the region like Indonesia, it is something to be proud of for a nation with a population of 28 million," he said. Koh said Malaysia's advantage was that the banks, corporate firms and individuals had strong balance sheets. "The structural mechanisms that the local banks have, thanks to previous financial and economical crisis, will continue to help the firms override the risks from the crisis," he said. He said generally, the world, particularly the West, was amazed at the rise of Asian economies. "What Asian countries should do now is to make sure that its banking sector remains healthy, and the corporate system sound. "I will not discount the fact that the impact will be still be there but it will not be fatal," he said. -- BERNAMA