Sunday August 15, 2010
IMF: Malaysia's Economy to rebound (capital city is Kuala Lumpur)
WASHINGTON: Malaysia’s economy is set for a strong rebound this year from recession with near-term prospects for the economy “favourable,” the International Monetary Fund said on Friday, forecasting growth of close to 7% this year.
In its annual review of Malaysia’s economy, the IMF forecast growth would resume this year at 6.7% after a 1.7% contraction in 2009. Next year, growth would likely moderate to 5.3%, it added.
“A broad-based recovery is underway and policies are returning to more normal settings,” the IMF said in the review dated July 30 but only published now.
The Fund said monetary policy had been “appropriately recalibrated” to sustain non-inflationary growth.
IMF staff analysis showed Malaysia’s currency to be on the weaker side and said it supported the government’s stance for a stronger ringgit. The authorities disagreed with the staff’s assessment on the current level of the exchange rate, the Fund said.
The sides, however, agreed that a strengthening in the currency would help rebalance the economy toward domestic demand.
“(The IMF) agreed with the authorities’ view that a stronger ringgit could boost over time the role of domestic demand as a growth driver and promote a shift toward higher-value added industries,” the IMF added.
The ringgit has strengthened by around 8% since the start of this year, making it the best performing currency in Asia ahead of the Chinese yuan.
IMF: Malaysia's Economy to rebound (capital city is Kuala Lumpur)
WASHINGTON: Malaysia’s economy is set for a strong rebound this year from recession with near-term prospects for the economy “favourable,” the International Monetary Fund said on Friday, forecasting growth of close to 7% this year.
In its annual review of Malaysia’s economy, the IMF forecast growth would resume this year at 6.7% after a 1.7% contraction in 2009. Next year, growth would likely moderate to 5.3%, it added.
“A broad-based recovery is underway and policies are returning to more normal settings,” the IMF said in the review dated July 30 but only published now.
The Fund said monetary policy had been “appropriately recalibrated” to sustain non-inflationary growth.
IMF staff analysis showed Malaysia’s currency to be on the weaker side and said it supported the government’s stance for a stronger ringgit. The authorities disagreed with the staff’s assessment on the current level of the exchange rate, the Fund said.
The sides, however, agreed that a strengthening in the currency would help rebalance the economy toward domestic demand.
“(The IMF) agreed with the authorities’ view that a stronger ringgit could boost over time the role of domestic demand as a growth driver and promote a shift toward higher-value added industries,” the IMF added.
The ringgit has strengthened by around 8% since the start of this year, making it the best performing currency in Asia ahead of the Chinese yuan.
http://thestar.com.my/news/story.asp?file=/2010/8/15/nation/6861094&sec=nation
For August 15, 2010 - ASEAN exchange rates ...
1 Malaysian Ringgit (MYR) = 0.31514 US Dollar (USD)
*1 Indonesian Rupiah (IDR) = 0.0001101 US Dollar (USD)
1 Thai Baht (THB) = 0.03086 US Dollar (USD)
1 Brunei Dollar (BND) = 0.72369 US Dollar (USD)
1 Singapore Dollar (SGD) = 0.73347 US Dollar (USD)
1 Philippine Peso (PHP) = 0.02204 US Dollar (USD)
*1 Vietnamese Dong (VND) = 0.00005175 US Dollar (USD)
1 Chinese Yuan Renminbi (CNY) = 0.14695 US Dollar (USD)
1 Japanese Yen (JPY) = 0.01160 US Dollar (USD)
_medium .28?
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