The Malaysian economy is expected to expand by between five and 5.5 per cent this year, driven mainly by private consumption.
Malaysian Rating Corp Bhd chief economist, Nor Zahidi Alias, said consumption would continue to lend support to the economy, helping to compensate for the lower private investments in the country, which were still in the process of picking up.
"Efforts have been made to drive the country's investment, which I think will bear fruit in the next few years.
"While waiting for that, I think it is helpful to have private consumption to add as the catalyst for the growth," he told Bernama on the sidelines of the Inaugural ISIS Praxis Seminar 2011 here Thursday.
Meanwhile, ISIS Malaysia chief executive, Datuk Dr Mahani Zainal Abidin, said the country's economic growth was expected to be positive but at a lower rate this year.
She said the realisation of the Economic Transformation Programme (ETP) projects was crucial in order to sustain the growth.
"The momentum must be built. On average, RM65 billion is needed every six months until 2020 in order to achieve the ETP targets," she said.
Mahani said elections, capital inflow and government fund raising from the market would be among the factors affecting the country's growth this year.
"Elections will inject more funds into the economy while the government is now raising funds from the market through Malaysian Government Securities.
"The market may also see a larger inflow of hot money in the domestic capital market," she said.