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.