Malaysia's economic growth to slow

Malaysia's economic growth to slow

KUALA LUMPUR: Malaysia's economy will grow at a slower pace than previously expected because of rising oil prices and soft global demand for electronic goods, an influential economic think tank said on Tuesday.

The Malaysian Institute of Economic Research (MIER) expects the export-driven country's economy to grow by 5.1 percent in 2005, down from 7.1 percent last year. The government expects growth of between 5 percent and 6 percent.

The think tank cut its previous 5.4 percent forecast because crude oil continues to trade at record-high levels, while an expected recovery in global electronics demand is yet to materialize.

"If oil prices continue to rise, further downgrading (of the GDP forecast) may become necessary," MIER said in a report.

MIER is a private think tank that receives considerable government funding through research contracts. -- AP