Malaysia's economy sustained at 8.2%<\/p>\n
KUALA LUMPUR (AFP): Malaysia's economy grew a robust 8.2
\npercent in the first quarter on the back of buoyant manufacturing
\nactivity and higher exports, the central bank said yesterday.<\/p>\n
The country also logged the biggest quarterly trade surplus
\nsince 1993, reversing a deficit from the previous quarter, Bank
\nNegara said in its report on the economy's performance in the
\nthree months to March.<\/p>\n
The gross domestic product (GDP) growth, indicated in
\npreliminary estimates, was unchanged from the previous quarter
\nbut eased a shade from 8.3 percent in the corresponding period
\nlast year.<\/p>\n
\"The growth momentum was supported mainly by sustained
\ndomestic activity in the manufacturing, construction and services
\nsectors while export demand recovered since early this year,\"
\nBank Negara said.<\/p>\n
The central bank had earlier projected the country's economy,
\nwhich has grown at an annual eight percent since 1987, would
\nmoderate to 7.8-to-8.2 percent this year.<\/p>\n
Malaysia logged a trade surplus of two billion ringgit (US$800
\nmillion) compared to a deficit of 483 million ringgit in the
\nprevious quarter, the bank said.<\/p>\n
It attributed the surplus, the largest recorded since the
\nthird quarter of 1993, to lower imports of intermediate and
\ninvestment goods and stronger exports.<\/p>\n
Bank Negara said growth remained high in the electronics sub-
\nsector following a modest and gradual recovery in global demand
\nfor semi-conductors since late last year.<\/p>\n
Output of the agriculture sector also expanded due to higher
\nproduction of crude palm oil and a turnaround in cocoa output.<\/p>\n
The bank said growth in the industry would be higher if
\nindications of increased logging activity in East Malaysia on
\nBorneo island due to clearing of forests for agriculture and
\nhydroelectric projects were taken into account.<\/p>\n
\"However, this is a one-off activity given that Malaysia
\nadheres to the policy of sustainable management,\" it said, adding
\nthat the increased logging would not affect underlying economic
\nfundamentals.<\/p>\n
Inflation rose at a more moderate rate of 3.1 percent in the
\nfirst quarter, down from 3.3 percent in the previous quarter.<\/p>\n
Bank Negara said interest rates were relatively stable in the
\nfirst four months this year but the daily weighted three-month
\ninterbank rate rose sharply to 8.62 points on May 16 triggered by
\nthe baht crisis in Thailand.<\/p>\n
The rates drifted downwards to 7.8 percent on May 28.<\/p>\n
\"The rise in short-term money market interest rates
\nessentially reflected the shortage in ringgit in the market
\nfollowing speculative activity during this period. The current
\nmonetary policy remains unchanged,\" the bank said.<\/p>\n
Bank Negara's international reserves totaled 72.2 billion
\nringgit at the end of March, sufficient to finance about 4.7
\nmonths of retained imports.<\/p>",
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