KUALA LUMPUR, Feb 27 — Malaysia is heading towards recession this year after economic growth stopped at 0.1 per cent in the last quarter, the slowest annual pace since 2001, due to weakening external demand.
The slump also slashed the 2008 GDP growth to 4.6 per cent, falling from 6.3 per cent in 2007 despite optimistic projections of at least 6 per cent.
Government officials and economists had earlier forecast for 0.5 to 1 per cent growth for the 2008’s fourth quarter but Bank Negara figures today revealed that the economy slowed faster than expected.
Finance Minister Datuk Seri Najib Abdul Razak said today the bleak figures will prompt the government to revise downwards its forecast of 3.5 per cent GDP growth for 2009.
“I do not think that we can anticipate an improvement in the GDP figures for the next quarter, but of course, it all depends on the situation in the United States and Europe,” said the deputy prime minister who is set to table a new stimulus package on March 10.
Most of Malaysia’s main trading partners entered recession since last year but Putrajaya had been optimistic of staving off the downturn although recent export and jobless figures painted a pessimistic outlook.
The Statistics Department said the manufacturing sector contracted 8.8 per cent for the first time after 26 consecutive positive quarters while construction shrank by 1.6 per cent from a 1.2 per cent growth.
But the services sector continued to expand to 5.6 per cent from 7.1 per cent in the previous quarter while agriculture slowed to 0.5 per cent from 3 per cent in the same period.
Authorities said services continued to boost the supply side while private and government consumption expanded growth on the demand side.
Bank Negara disclosed that inflation fell to 5.9 per cent in the fourth quarter from 8.4 per cent in the previous quarter due to adjustments in fuel prices.
“The downward trend in inflation is expected to continue in 2009,” Bank Negara said.
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International Malaysia Law Conference (26 to 28 Sept 2012) Hurry up! The countdown continues and the current promotion rate ends 30 June 2012. Don't miss what is going to be the best conference in the region! On top of that, if you sign up with 5 or more people from the same organisation, we will give you a 10% group discount. Click on the link above to register.
Seminar on an Introduction to the Industrial Relations Act (23 May 2012) Organised by the Kuala Lumpur Bar Professional Development Committee, this seminar will take place at 3:00 pm, at the Kuala Lumpur Bar Auditorium, on 23 May 2012 (Wednesday). The seminar will be conducted by Wong Keat Ching. Click on the link above for more details.
Seminar on Tax Issues in Financial Transactions (25 May 2012) Organised by the Kuala Lumpur Bar Professional Development Committee, this seminar, featuring S Saravana Kumar, will take place at 3:00 pm, at the Kuala Lumpur Bar Auditorium, on 25 May 2012 (Friday). Click on the link above for more details.
Dialogue with Criminal Law Practitioners (26 May 2012) Organised by Bar Council, this dialogue will take place at 10:00 am to 12:00 pm, at the Raja Aziz Addruse Auditorium, Bar Council, on 26 May 2012 (Saturday). Click on the link above for more details.
Conference on Competition Law (31 May 2012) Organised by Bar Council with the support of LexisNexis, this conference will take place at 8:30 am to 4:00 pm, at Renaissance Kuala Lumpur Hotel, on 31 May 2012 (Thursday). For more details or to register, please contact Vilashini Vijayan (03-2050 2095; vila@malaysianbar.org.my). Click on the link above for more details.
Talk on What Clients Want (7 June 2012) Organised by the KL Bar Practitioners' Affairs Committee, the talk, presented by Ong Eu Jin, will take place at 5:00 pm, at the KL Bar Auditorium, on 7 June 2012 (Thursday). Click on the link above for more details.
4th LAWASIA Family Law Conference, Penang (13 and 14 July 2012) Supported by Penang Bar Committee and the Malaysian Bar, this conference, themed “The New Global Family: Emerging Trends and Challenges to Family Practice”, will take place at Traders Hotel, Penang, on 13 and 14 July 2012 (Friday and Saturday). Click on the link above for more details.
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Circular No 108/2012: Best Deals for International Malaysia Law Conference (26 to 28 Sept 2012)
