Datuk Seri Najib Tun Razak said government measures to tackle the impact of global financial crisis on Malaysia brought very encouraging results as shown by the 7.2 percent economic growth announced by the central bank Friday.
The prime minister said the figure spoke not of a modest economic recovery but a strong and sustainable growth, and the country would continue to feel its momentum this year.
"I hope we can achieve the six percent target for this year although the challenges surely will be very big because when our economy continues expanding, the future upside will be more challenging than the past years," he told reporters after meeting longhouse elders from Belaga, Sarawak, at Putra World Trade Centre here.
Bank Negara Malaysia reported in its "Economic and Financial Developments in the Malaysian Economy in the Fourth Quarter of 2010" that the country registered 7.2 percent growth last year compared with a contraction of 1.7 percent in 2009.
For the fourth quarter 2010, the economy grew 4.8 percent.
Higher private and public sector spending contributed to the expansion in domestic demand while the slower growth in the global economy had led to weaker growth in external demand, the central bank said.
On the supply side, all economic sectors with the exception of the primary sectors, continued to expand further during the quarter, it added.
The prime minister said the government would continue its efforts to strengthen local demand particularly through the private sector playing their roles in respect to investment and consumption.
"Projects under the Economic Transformation Programme which are being implemented at various stages are believed able to stimulate economic growth as expected," Najib said.