Malaysia’s economy to grow 5.6%

The Malaysian economy is expected to grow 5.6% this year driven primarily by domestic economy while inflation is expected to rise to 2.5 per cent due to increased inflow of capital into the manufacturing sector, says the Malaysian Institute of Economic Research (MIER). According to the Malaysian Institute of Economic Research (MIER), it also projected the gross domestic product (GDP) for 2014 to be within 5.0% and 6.0% and inflation to stay at 2.5%. MIER’s Executive Director, Dr Zakariah Abdul Rashid, said Malaysia’s economy’s growth was faster than the global economic growth, projected at 3.3 per cent in 2012 and 3.6 per cent this year. “Malaysian economy should grow faster than the world economy as it is located at the world’s most dynamic region. “We are riding on the advantage of Asean as the region that will be driving global growth,” said Zakariah adding the growth will be driven by domestic investment, given the on going implementation of the government’s Economic Transformation Programme, better export data and continuing negative developments overseas. The growth will be driven by domestic investment, given the ongoing implementation of the government’s Economic Transformation Programme, better export data and continuing negative developments overseas, the Institute added.