Bellerbys Economics - Mr Stephenson

Thursday, September 14, 2006

Malaysia News

The Malaysian economy continues to make good progress with economic growth this year of around 5.5%. Inflation is running a little high at 3.9% and this may result in an increase in interest rates soon. In turn, this may reduce growth and exports a little - one of the effects of an interest rate rise being an increase in the exchange rate over a period of time, making exports more expensive.

Malaysia has a good current account surplus of around $7bn annually and exports mostly electronic products. GDP PPP per person is around $10,000 placing Malaysia in the middle income group of countries.

The only dark cloud on the horizon is the Prime Minister who is coming in for a lot of criticism for appointing friends and relatives to high positions. His own future looks in doubt.

Meanwhile, it appears that the biggest growth industry in Malaysia is the beauty industry with a rapid increase in expenditure on plastic surgery, botox treatments, skin blemish removal and so on.

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