The Malaysian economy is expected to register a growth in the region of 7% this year, said Bank Negara governor Tan Sri Dr Zeti Akhtar Aziz.
While the external sector might be affected by the slower global growth, the momentum of domestic demand was projected to be sustained this year, supported by the continued firm expansion in private sector activity, she said.
“Most encouraging is that private investment is expected to strengthen and become an important contributor to the growth,” Zeti said in her keynote address at the welcome dinner for participants of the Financial Stability Institute-Executives' Meeting of East Asia-Pacific Central Banks high-level meeting here yesterday.
Against the backdrop of continuing uncertainties, she said, Asia was expected to continue to lead global growth, supported by strong macro-economic fundamentals and sound financial systems.
The revival of private sector economic activity has been an important factor in sustaining the strong growth prospects in Asia.
“We are now entering the second year of global recovery. The rebound in 2010 has been largely led by the exceptional performance of the emerging economies in particular in Asia,” she said.
Growth was expected to remain strong this year, although at a more moderate pace compared with last year. “Amid favourable growth prospects, Asia will, however, have to manage the impact of international developments given its high degree of economic and financial openness.”
The global attention was focused on the fiscal conditions of several of the advanced economies, the progress in the financial reforms and the monetary and financial measures being implemented in the crisis-affected economies.