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Escap projects 4.5 per cent GDP growth for Malaysia
Publication Date : 10-05-2012
Malaysia's economy is expected to grow by a slower 4.5 per cent this year due to weaker external demand, according to the United Nations Economic and Social Survey of Asia and the Pacific (Escap) 2012.
International Centre for Education in Islamic Finance Professor Emeritus Dr Mohamed Ariff Abdul Kareem said the economy will be spurred by domestic demand.
He also said there is a possibility of the economy growing at 5 per cent or more in 2013.
However, Mohamed Ariff said Malaysia's budget deficit is a major concern, as its credit rating is under pressure.
"There is a need to rein in expenditure and increase tax revenue," he sugegsted.
Malaysia's fiscal deficit stood at 5 per cent last year compared to 5.6 per cent previously.