{
    "success": true,
    "data": {
        "id": 1014656,
        "msgid": "merrill-sees-malaysia-inflation-gdp-rising-1447893297",
        "date": "1994-10-08 00:00:00",
        "title": "Merrill sees Malaysia inflation, GDP rising",
        "author": null,
        "source": "REUTERS",
        "tags": null,
        "topic": null,
        "summary": "Merrill sees Malaysia inflation, GDP rising KUALA LUMPUR (Reuter): Malaysia's robust economy will start to strain at the seams next year as a tight labor market and buoyant domestic demand push up inflation and wages, Merrill Lynch said yesterday. In its Asian economic commentary made available to Reuters, Merrill said Malaysia's Gross Domestic Product (GDP) is expected to grow by nine percent next year on the back of \"sound economic fundamentals\" over the next 10 to 12 months.",
        "content": "<p>Merrill sees Malaysia inflation, GDP rising<\/p>\n<p>KUALA LUMPUR (Reuter): Malaysia's robust economy will start to<br>\nstrain at the seams next year as a tight labor market and buoyant<br>\ndomestic demand push up inflation and wages, Merrill Lynch said<br>\nyesterday.<\/p>\n<p>In its Asian economic commentary made available to Reuters,<br>\nMerrill said Malaysia's Gross Domestic Product (GDP) is expected<br>\nto grow by nine percent next year on the back of \"sound economic<br>\nfundamentals\" over the next 10 to 12 months.<\/p>\n<p>\"There is a good chance that 1994 will see the official growth<br>\ntarget of 8.4 percent being surpassed,\" Merrill said.<\/p>\n<p>\"Although growth is likely to ease in 1995, it may not be much<br>\nbelow nine percent,\" the report said.<\/p>\n<p>But Malaysia's robust growth had its accompanying problems in<br>\nthe shape of spiraling domestic demand from both the private and<br>\npublic sector, rising inflation and growing tightness in the<br>\nlabor market.<\/p>\n<p>\"Consumption growth could prove exceptionally strong in the<br>\ncoming year,\" Merrill Lynch said. \"The tight labor market is<br>\nbelieved to be fueling rapid wage increases.<\/p>\n<p>\"In 1993, based on collective wage agreements, wages in the<br>\nmanufacturing sector rose 15.1 percent compared with 9.9 percent<br>\nin the previous year.\"<\/p>\n<p>A massive slate of infrastructure spending for the 1994-1998<br>\nperiod is projected to cost between 55 billion ringgit (US$21.4<br>\nmillion) to 72 billion ringgit ($28.12 million).<\/p>\n<p>The infrastructure spending will peak in the 1995-1996 period,<br>\nMerrill said, aggravating domestic demand and boosting fixed<br>\ninvestment growth.<\/p>\n<p>\"A second factor that is also likely to contribute to rapid<br>\nfixed investment growth in the coming years will be the need for<br>\nautomation in factories,\" the Merrill Lynch report said.<\/p>\n<p>Merrill said inflation, which has been foremost on the minds<br>\nof the country's leaders and is expected to dominate budget<br>\ndiscussions this year, will jump higher to 4.5 to five percent<br>\nnext year. It was 3.6 percent in calendar 1993 and is running at<br>\naround four percent this year.<\/p>\n<p>\"(Inflationary pressures) are likely to stem mainly from the<br>\nrapid wage increases that are inevitable now that the economy has<br>\neffectively reached full employment.\"<\/p>\n<p>Malaysia's unemployment rate stood at three percent in 1993<br>\nand could drop to about 2.6 percent this year, Merrill said.<\/p>",
        "url": "https:\/\/jawawa.id\/newsitem\/merrill-sees-malaysia-inflation-gdp-rising-1447893297",
        "image": ""
    },
    "sponsor": "Okusi Associates",
    "sponsor_url": "https:\/\/okusiassociates.com"
}