Singapore-based OCBC Bank has revised downward, Malaysia's gross domestic product (GDP) forecast for 2011 to 4.7 per cent from 5.8 per cent, in view of weakening export growth going into the year-end.
OCBC economist Gundy Cahyadi said the country's GDP could slide further to as low as 3.8 per cent next year on a moderating global economy which show signs of extending into 2012.
"An extended global soft patch would directly hit the more export oriented economies in the region, and include the likes of Hong Kong, Singapore, Taiwan, Malaysia and South Korea," he said in a statement today.
He said though Malaysia's export growth came in higher than expected at 10.9 per cent year-on-year in August, held up by commodity exports, the bank did not see it as a reversal of trend.
"This is especially with imports of intermediate goods clearly tilted towards the downside," he added.
Gundy said credit growth which has eased off in the past couple of months and the deteriorating employment situation, is clearly an indication that the moderation in export earnings, has weighed on Malaysia's domestic demand. --Bernama
OCBC economist Gundy Cahyadi said the country's GDP could slide further to as low as 3.8 per cent next year on a moderating global economy which show signs of extending into 2012.
"An extended global soft patch would directly hit the more export oriented economies in the region, and include the likes of Hong Kong, Singapore, Taiwan, Malaysia and South Korea," he said in a statement today.
He said though Malaysia's export growth came in higher than expected at 10.9 per cent year-on-year in August, held up by commodity exports, the bank did not see it as a reversal of trend.
"This is especially with imports of intermediate goods clearly tilted towards the downside," he added.
Gundy said credit growth which has eased off in the past couple of months and the deteriorating employment situation, is clearly an indication that the moderation in export earnings, has weighed on Malaysia's domestic demand. --Bernama
