KL economic growth to slow down: MIER<\/p>\n
Agence France-Presse
\nKuala Lumpur<\/p>\n
The Malaysian Institute of Economic Research (MIER) on Tuesday
\ncut its 2003 economic growth forecast for Malaysia due to a fall
\nin tourists following the outbreak of SARS.<\/p>\n
MIER executive director Mohamed Ariff said it reduced its
\ngrowth forecast for Malaysia to 3.7 percent from an earlier
\nprojection of 5.7 percent.<\/p>\n
SARS has had an adverse impact on tourism, an industry which
\nhas helped boost the country's economy in the past few years, he
\nwas cited as saying by the official Bernama news agency. Tourism
\nis Malaysia's second largest foreign exchange earner after
\nmanufacturing.<\/p>\n
Malaysia has frozen visas for visitors from China, Taiwan,
\nVietnam and Canada to curb the spread of the SARS virus.<\/p>\n
On Monday, ING Financial Markets trimmed its 2003 forecast for
\nMalaysia to 4.0 percent from 5.0 percent due to the outbreak of
\nthe deadly Severe Acute Respiratory Syndrome (SARS).<\/p>\n
Azrul Azwar, an economist at MIDF Sisma Securities recently
\nsaid that tourism arrivals would drop to 12.9 million this year
\nfrom 13.3 million in 2002.<\/p>\n
\"This is a drop from our initial forecast of 13.56 million
\ntourists for 2003,\" he said.<\/p>\n
As the country's second largest foreign exchange earner, the
\ndip in visitors would badly affect the economy, he added.<\/p>\n
Ariff said the threat of SARS posed a more serious threat to
\ngrowth than the Iraq war.<\/p>\n
The 3.7 percent forecast was realistic and achievable taking
\ninto consideration a stimulus package to be announced by the
\ngovernment soon, he said.<\/p>\n
But Ariff said the new forecast for Malaysia was based on the
\nassumption there would be no U.S. reprisal on Malaysia's war
\nstance and that the SARS epidemic would subside.<\/p>\n
Government officials say the stimulus package aimed to bolster
\nthe economy was expected to be announced in May.<\/p>\n
MIER also revised downward its 2004 economic forecast to 5.4
\npercent from 6.3 percent amid global uncertainties.<\/p>\n
The central Bank Negara Malaysia, in its 2002 annual report,
\nwarned gross domestic product (GDP) growth could slide even lower
\nif global economic uncertainties persist.<\/p>\n
Bank Negara governor Zeti Akhtar Aziz said the new forecast,
\nup slightly from 4.2 percent growth recorded last year, was in
\nline with expectations in other Asian economies for the pace of
\ngrowth last year to be sustained into 2003.<\/p>",
"url": "https:\/\/jawawa.id\/newsitem\/kl-economic-growth-to-slow-down-mier-1447899208",
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