Mahathir says GDP growth may exceed 4%

Mahathir says GDP growth may exceed 4%

Agence France-Presse, Kuala Lumpur

Prime Minister Mahathir Mohamad has painted a rosy picture of the
Malaysian economy amid recovery of its top trading partner -- the
United States, a report said Sunday.

Mahathir, 76, who is also the finance minister was cited by
the Sunday Star newspaper as saying that economic growth for 2002
had been projected to exceed four percent.

Mahathir had previously said that the economy was expected to
grow by three percent this year while the central bank said it
would be 3.5 percent.

The central bank last month said Malaysia's economic recovery
was on track with gross domestic product (GDP) rebounding from
two quarters of contraction to expand 1.1 percent in the quarter
to March.

Inflation remained low at 1.4 percent and the country
continued to operate under full employment despite the
retrenchment of 10,083 workers in the first quarter, the central
bank said.

Mahathir said Malaysia's economic recovery was assisted by the
growing confidence shown by foreign investors especially from the
United States to be active again in international trade.

"The same is also true for investments in the stock market.
Malaysia's credit rating has also improved," he said.

Mahathir said the national economy was now on a sound footing
following the effects of the government's strategy in
rejuvenating it among others through the opening of new export
markets.

Economists had said the growth in the first quarter confirmed
expectations of an economic recovery.

"The economy is slowly but definitely crawling out of the
slowdown. It is picking up again and this is a confirmation of
what we expect," said Nizam Idris, regional economist with
Singapore-based IDEAglobal.com.

"I think the economy has done well to diversify -- to spread
its growth (dependence) away from manufacturing."