Malaysia aims to become financial hub<\/p>\n
KUALA LUMPUR (AFP): Malaysia is poised to emerge as a
\nfinancial hub due to its strong economic growth and the
\nglobalization of the financial market, a junior minister here
\nsaid yesterday.<\/p>\n
Deputy Finance Minister Affifudin Omar based his optimism on
\nthe an expected flow of foreign funds.<\/p>\n
\"The government is also optimistic the prevailing current
\naccount deficit will be overcome by the turn of the century,\" he
\nwas quoted as saying by Bernama news agency.<\/p>\n
The current account deficit -- measuring the deficit in trade,
\nservices, debt payments and overseas transactions -- rose to 17.8
\nbillion ringgit (US$7.12 billion) last year.<\/p>\n
Affifudin also reminded bankers and consumers not to \"overlend
\nor over-borrow,\" even though Malaysia would continue its robust
\ngrowth.<\/p>\n
\"The government does not want the lower income group to borrow
\nheavily or finance companies to lend heavily to consumers for the
\npurchase of property,\" he said.<\/p>\n
Economists have said Malaysia's problems are due to the
\ncountry's high annual economic growth of more than eight percent
\nsince 1987.<\/p>\n
In its 1997 national budget, the government forecast the
\ncurrent account deficit would narrow to 14.771 billion ringgit
\nthis year and improve to 11.497 billion ringgit next year.<\/p>\n
Prime Minister Mahathir Mohamad in August dismissed the
\ncurrent account deficit as a major problem, saying the country's
\nrate of national savings, presently at 34.6 percent of gross
\ndomestic product, was high.<\/p>\n
Malaysia's economic growth is projected by a think-tank to
\nease to 8.3 percent this year from a dizzying 9.5 percent last
\nyear due to a slowdown in exports and slower growth in private
\ninvestment.<\/p>",
"url": "https:\/\/jawawa.id\/newsitem\/malaysia-aims-to-become-financial-hub-1447893297",
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"sponsor": "Okusi Associates",
"sponsor_url": "https:\/\/okusiassociates.com"
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