Source: MIDA
Malaysia's economy is expected to grow at a faster rate of 5.7% this year, according to The World Bank, compared to its November forecast of 4.1% for 2010.
The East Asian region is also expected to record a higher growth of 8.7% from the earlier projection of 7.8% in November.
Prime Minister Datuk Seri Najib Tun Razak is also confident that growth in the Malaysian economy would surpass Bank Negara Malaysia (BNM)'s growth forecast of 4.5% for this year, by one to two percentage points with the right "policy intervention."
The Malaysian Ringgit has also continued to strengthen, amidst growing confidence in the expansion of the domestic economy. Yesterday, the Ringgit was traded at 3.192 against the US dollar, recording a 23-month high, before it ended at 3.211.
Year-to-date, the Ringgit has increased 6.7% against the US dollar, emerging as the best performer among active Asian currencies.
Meanwhile, Zulkiflee Nidzam, the Head of Foreign Exchange and Bond Trading at Asian Finance Bank Bhd (AFB), said the strong growth prospects and favourable government policy initiatives, have boosted the flows of foreign funds into the equity and bond markets.
Adapted from StarBiz 8 April 2010