The Malaysian Economy: Booming Or Not.

The Malaysian Economy: Booming The Economy: Following a period of severe and prolonged recession, the Malaysian economy has returned to growth aided by a relaxation of monetary and fiscal policies and by increased export demand, particularly in the electronics sector. While the world economic slowdown was more severe than expected and the unprecedented September 11 events in the United States had widespread implications for all economies, Malaysia was able to steer away from a major economic …

…strengthen further in the near future. However, some downside risks need to be addressed as the strength of global recovery is still uncertain and external demand may not be as strong as it was during the 1999-2000 period. The current economic upturn is taking place amidst global excess capacity, particularly in the information and communication technology sector. Malaysia, therefore, needs to ensure that the economic recovery gathers momentum and that the downside risks are minimized.