Wednesday, December 19, 2007

Confident of 6% growth??

By Star Biz

Malaysia is confident that it can achieve its projected target of economic growth of between 6% and 6.5% next year, Second Finance Minister Tan Sri Nor Mohamed Yakcop said.

He said that based on the growth momentum in the third quarter of this year, the country could achieve a growth rate of higher than 6% in 2008, while the projected inflation rate should be at 2%.

Nor Mohamed said the projected positive growth of the country's economic performance was based on the healthy developments in the investment sector and the increased dividends given to investors by several major funds such as Amanah Saham Berhad Bumiputra (ASB), Employees Provident Fund (EPF), Tabung Haji and Lembaga Tabung Angkatan Tentera (LTAT). The higher dividends and returns by the funds reflected the confidence shown in Bursa Malaysia and the economy, he told reporters at Parliament House on Wednesday.

The Bursa index gained an impressive 1385 points on Tuesday with a market value of more than one trillion ringgit, he noted.

"There will be challenges for next year, such as the sub-prime issue in the United States which had not tapered off yet.

"But we have met more serious challenges before this,” he said.

Nor Mohamed said the government is also confident of reducing the economic deficit to 3.1% in 2008 from 3.2% this year.

*Personally i think the economy wouldn't be so stable next year! But we'll c!