IMF Says Malaysia Well On Way Towards Advanced Country Status Options

[fadlee]

WASHINGTON, April 16 (Bernama) -- Malaysia has made significant progress towards achieving advanced country status since the country launched its Vision 2020 in 1991, says the International Monetary Fund (IMF).

Its progress is underpinned by strong export-led growth, low inflation and the deepening of its financial markets, the IMF Executive Board says in its 2006 Article IV Consultation with Malaysia just released here.

Real GDP grew by an estimated six percent driven by buoyant private consumption and a continued recovery of private investment, while core inflation has remained low, according to the country report.

Malaysia's external position has remained strong. The current account surplus remains at above 15 percent of GDP while official reserves (US$83 billion) are at comfortable levels.

While the federal government deficit was in line with the 2006 budget deficit, the non-oil primary deficit increased to an estimated nine percent of GDP in 2006 from 7.25 percent in 2005, reflecting the growing reliance on oil and gas revenue.

"The banking system is sound. Banks are generally well capitalised and highly liquid, and their asset quality is improving and profitability is satisfactory," the report says.

However, the IMF feels that the banks' rising exposure to the household sector is their main vulnerability as household indebtedness is high relative to other countries and disposable income, but appears manageable at present.

The government-linked companies (GLC) transformation programme has started bearing fruit while the Ninth Malaysia Plan emphasises upgrading the country's human capital base, promoting growth in high-value added sectors, and strengthening public institutions and service delivery.

"Malaysia has progressed significantly towards reaching advanced country status and now benefits from deep financial markets and a low poverty rate," the report notes.

Deputy Finance Minister Datuk Dr Awang Adek Hussin, here for the annual spring meetings of the World Bank/IMF which ended yesterday, pointed out Malaysia's success in eradicating poverty from a high of 49 percent in 1970 to just 5.5 percent last year.

[ricochet]

WASHINGTON, April 16 (Bernama) -- Malaysia has made significant progress towards achieving advanced country status since the country launched its Vision 2020 in 1991, says the International Monetary Fund (IMF).

Its progress is underpinned by strong export-led growth, low inflation and the deepening of its financial markets, the IMF Executive Board says in its 2006 Article IV Consultation with Malaysia just released here.

Real GDP grew by an estimated six percent driven by buoyant private consumption and a continued recovery of private investment, while core inflation has remained low, according to the country report.

Malaysia's external position has remained strong. The current account surplus remains at above 15 percent of GDP while official reserves (US$83 billion) are at comfortable levels.

While the federal government deficit was in line with the 2006 budget deficit, the non-oil primary deficit increased to an estimated nine percent of GDP in 2006 from 7.25 percent in 2005, reflecting the growing reliance on oil and gas revenue.

"The banking system is sound. Banks are generally well capitalised and highly liquid, and their asset quality is improving and profitability is satisfactory," the report says.

However, the IMF feels that the banks' rising exposure to the household sector is their main vulnerability as household indebtedness is high relative to other countries and disposable income, but appears manageable at present.

The government-linked companies (GLC) transformation programme has started bearing fruit while the Ninth Malaysia Plan emphasises upgrading the country's human capital base, promoting growth in high-value added sectors, and strengthening public institutions and service delivery.

"Malaysia has progressed significantly towards reaching advanced country status and now benefits from deep financial markets and a low poverty rate," the report notes.

Deputy Finance Minister Datuk Dr Awang Adek Hussin, here for the annual spring meetings of the World Bank/IMF which ended yesterday, pointed out Malaysia's success in eradicating poverty from a high of 49 percent in 1970 to just 5.5 percent last year.

Congrats Malaysia. I hope what MIER promise to float the currency materialises by year end. That will open the flood gate back to Malaysia......and Malaysia shall be at par with other developed nation

And I hope....the tongkat shall be removed as well

[Malay_guy]

They say "our economy is rising" "we have one of the fastes growing economy in the world" and bla,bla, bla. but when asked to raise the salary for a public servant, we hear "our economy is not so good this time" "we cannot afford this" and bla,bla, bla.

[ricochet]

They say "our economy is rising" "we have one of the fastes growing economy in the world" and bla,bla, bla. but when asked to raise the salary for a public servant, we hear "our economy is not so good this time" "we cannot afford this" and bla,bla, bla.

Sounds like my boss.....

Dats why must try to make some in the stockmarket on company expenses and time

Tot of quitting and concentrate on market but my contractor told me this.......they gave you a desk, table and telephone, broadband connection and a pc and a notebook. THEY PAY U TO MAKE PLAY AND MAKE MONEY FR THE STOCKMARKET.....why the hell you wanna QUIT for?

Make sense huh

[Malay_guy]

Lucky for you! if i do that where i am, i'll be accuse of using my position for personal gain. i sold nasi lemak in the office and i got myself a notice from higher up, "STOP DOING IT". they refuse to pay more and when we try to gain more money through our own initiative, they don't allow it for fear it may get in the way of our job.

This post has been edited by Malay_guy: Apr 18 2007, 12:38 AM

[ricochet]

Lucky for you! if i do that where i am, i'll be accuse of using my position for personal gain. i sold nasi lemak in the office and i got myself a notice from higher up, "STOP DOING IT". they refuse to pay more and when we try to gain more money through our own initiative, they don't allow it for fear it may get in the way of our job.

I think the priviledge that I get is something others would dream of. My project only starts in May-Jul. Aug-Sep another break and Oct-Dec another project. All overseas....dat worries me a lot considering the current market is damn hot

I have been sitting in the office doing nothing but stock since dec. And I am NOT COMPLAINING

[forrestcat]

Why should we listen to the IMF....they screwed alot of things.

Maybe we should worry about this report.

[ricochet]

Why should we listen to the IMF....they screwed alot of things.

Maybe we should worry about this report.

dun listen lor....listen to your THE BEAUTIFUL MIND

[fadlee]

UN reports some Asian nations vulnerable to currency crisis, leaves Malaysia out

BANGKOK: Four Asian nations hit hard by the 1997-98 financial crisis face renewed vulnerability to sudden capital outflows that could cause a currency crisis, the United Nations said in a report, but left Malaysia out.

Despite the rapid economic growth of the region, Indonesia, South Korea, Thailand and the Philippines have recently showed some cracks in their economies that should be closely monitored, according to the U.N.'s Economic and Social Commission for Asia and the Pacific, or UNESCAP.

In particular, the report released Wednesday said managing exchange rates would pose a challenge to Asian countries this year, given that many currencies appreciated significantly against the U.S. dollar last year and are expected to gain strength this year despite intervention from central banks.

The 1997 collapse hit Thailand, Indonesia and South Korea hardest, setting off an avalanche of bankruptcies, wiping out thousands of jobs and shaking the foundations of the region's economies.

While the region has since bounced back strongly, the report warned that "crisis-affected countries, except for Malaysia, are displaying renewed vulnerability in 2006.''

It highlighted the appreciation of their exchange rates driven by short-term capital inflows - and the risk of a sudden reversal of capital flows - and greater inflationary pressures caused by higher oil prices.

"Although growth is expected to remain quite robust, there are some downside risks for the region,'' UNESCAP's principle officer Raj Kumar told a press conference in Bangkok.

Those risks include "a potential oil price shock, a disorderly unwinding of global imbalances and economic overheating in China.''

The U.N. predicted that economies across Asia would continue to grow rapidly, though slow slightly this year to 7.4 percent from 7.9 percent last year, partly due to a slowdown in the U.S. economy, a major market for Asian exports.

To assess a country's vulnerability to a currency crisis, UNESCAP devised an index that looks at the level of foreign exchange reserves to cover short-term debts, private domestic credit levels and exchange rate appreciation.

In the years leading up to the July 1997 crisis, which was triggered by a plunge in the Thai baht, the index steadily declined.

After a period of relative stability from 2000 to 2004, the index has started to deteriorate again in 2006 in crisis-affected countries except for Malaysia, the report showed.

Thailand now faces greater risks due to a decline in the ratio of foreign reserves to short-term debt and an increase in short-term capital inflows. - AP

[ricochet]

UN reports some Asian nations vulnerable to currency crisis, leaves Malaysia out

BANGKOK: Four Asian nations hit hard by the 1997-98 financial crisis face renewed vulnerability to sudden capital outflows that could cause a currency crisis, the United Nations said in a report, but left Malaysia out.

Despite the rapid economic growth of the region, Indonesia, South Korea, Thailand and the Philippines have recently showed some cracks in their economies that should be closely monitored, according to the U.N.'s Economic and Social Commission for Asia and the Pacific, or UNESCAP.

In particular, the report released Wednesday said managing exchange rates would pose a challenge to Asian countries this year, given that many currencies appreciated significantly against the U.S. dollar last year and are expected to gain strength this year despite intervention from central banks.

The 1997 collapse hit Thailand, Indonesia and South Korea hardest, setting off an avalanche of bankruptcies, wiping out thousands of jobs and shaking the foundations of the region's economies.

While the region has since bounced back strongly, the report warned that "crisis-affected countries, except for Malaysia, are displaying renewed vulnerability in 2006.''

It highlighted the appreciation of their exchange rates driven by short-term capital inflows - and the risk of a sudden reversal of capital flows - and greater inflationary pressures caused by higher oil prices.

"Although growth is expected to remain quite robust, there are some downside risks for the region,'' UNESCAP's principle officer Raj Kumar told a press conference in Bangkok.

Those risks include "a potential oil price shock, a disorderly unwinding of global imbalances and economic overheating in China.''

The U.N. predicted that economies across Asia would continue to grow rapidly, though slow slightly this year to 7.4 percent from 7.9 percent last year, partly due to a slowdown in the U.S. economy, a major market for Asian exports.

To assess a country's vulnerability to a currency crisis, UNESCAP devised an index that looks at the level of foreign exchange reserves to cover short-term debts, private domestic credit levels and exchange rate appreciation.

In the years leading up to the July 1997 crisis, which was triggered by a plunge in the Thai baht, the index steadily declined.

After a period of relative stability from 2000 to 2004, the index has started to deteriorate again in 2006 in crisis-affected countries except for Malaysia, the report showed.

Thailand now faces greater risks due to a decline in the ratio of foreign reserves to short-term debt and an increase in short-term capital inflows. - AP

double post la brader....I already posted in economic outlook

[fadlee]

double post la brader....I already posted in economic outlook

lol sorry dude..

[ricochet]

lol sorry dude..

what happened to you...so long menghilang diri

[fadlee]

what happened to you...so long menghilang diri

lol.. i just need time to sort out my problems.. thats why i seldom ranting about stuff in here..

[ricochet]

lol.. i just need time to sort out my problems.. thats why i seldom ranting about stuff in here..

do drop by whenever you can....this chat sum time go DEAD MODE

[fadlee]

do drop by whenever you can....this chat sum time go DEAD MODE

hehe thanks for your concern.. gd day dude..

[forrestcat]

WHat is an advenced country?

[cchmod]

Of course, Melayu boleh!
Soon Malaysia will prosper like Brunei, Japan and UAE.

[Jaimu-Jaimu]

Ugh. Another bumped topic. T__T