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