KL consumer confidence 'holding up well': central bank
KL consumer confidence 'holding up well': central bank
Agence France-Presse
Kuala Lumpur
Central bank governor Zeti Akhtar Aziz said consumer
confidence in Malaysia is "holding up well" despite the September
11 terrorists attacks on the United States.
"The pattern of consumer spending has generally shown that it
is higher in the fourth quarter," she was quoted as saying by the
New Sunday Times newspaper.
Zeti said car sales and the housing market are still showing
positive trends.
"This is shown by the rising loan demand for the purchase of
cars and residential properties," she said.
Zeti urged consumers not to overreact to the recent
developments in the United States and become over cautious.
"Consumers should therefore, continue with their planned
expenditures," she said, adding that it would provide further
positive support to the growth prospects of the economy.
But businessmen are lamenting that consumers are not spending
despite some religious celebrations round the corner. Many are
worried that they may not keep their jobs amid worsening world
economy in particular the U.S.
Prime Minister Mahathir Mohamad recently said the Malaysian
economy was "closely-pegged" with that of the U.S. and the
terrorist attacks would divert attention away from trade to
security matters.
The U.S. accounts for about 19 percent of Malaysia's foreign
trade, mainly in rubber products, textiles and clothing, optical
and scientific goods, electrical and electronics products and
wood products.
In the first two months this year, Malaysia's exports to the
U.S. rose 13 percent year-on-year to 11.5 billion ringgit
(US$3.03 billion). Bilateral trade last year was estimated at 120
billion ringgit.
Zeti said the government since the 1997-98 financial crisis
had intensified its efforts to diversify its exports to avoid
being vulnerable to external developments.
Mahathir late September said the economy would grow by one to
two percent this year compared to an earlier projection of five
to six percent.