ash, 914 alraedy... anyway,
The Malaysian Institute of Economic Research also expects inflation to rise to 3.2 per cent next year, mostly due to the effect from fuel price hikes
By Rupa Damodaran Published: 2007/11/27 (Business Times Online)
MIER National Economic Outlook Conference 2008-2009
THE Malaysian Institute of Economic Research (MIER) expects that any increase in petrol prices in Malaysia could be between 30 sen and 40 sen a litre.
"As a net oil exporter, the government can also absorb part of the increase in oil price and bear the burden a bit more and may not have to pass on all (to the consumers) as the mitigating factor is the increase in revenue for the oil and gas sector," MIER executive director Datuk Professor Mohamed Ariff Abdul Kareem told reporters during the two-day MIER National Economic Outlook Conference 2008-2009 in Kuala Lumpur yesterday.
He was commenting on the ongoing study on lowering the government's fuel subsidies and the government's assertion that subsidising petrol prices is becoming untenable, given the steep rise in global oil prices.
MIER also expects inflation to trend upwards next year to 3.2 per cent mostly due to the effect from fuel price hikes and the add-on effects on businesses.
Mohamed Ariff, however, does not expect Bank Negara Malaysia to tighten its monetary policy as it would lead to increased cost of doing business.
Malaysia's growth momentum had picked up slightly in the second quarter of 2007 to 5.7 per cent year-on-year from 5.5 per cent in the first quarter
MIER expects the GDP to register a 5.7 per cent year-on-year growth in the second half of the year and overall 2007 to turn in a 5.7 per cent year-on-year growth.
"On the whole, the somewhat stable business and consumer sentiments, fairly less favourable expectations indices of MIER surveys, and modest expansions in major indicators suggest that the second half may not be as vibrant as usual," he said.
However, with the expected rebound in the global economy in 2009, the Malaysian economy could shift towards its potential growth path, expanding by 5.7 per cent.
On the six per cent annual growth target set by the government under the Ninth Malaysia Plan, he said it was too high as the economy was currently underperforming largely due to the lack of demand.
At the function, MIER chairman (board of trustees) chairman Tan Sri Mohamad Sheriff Mohamad Kassim also launched a book "Economic Openness, Volatility and Resilience: Malaysian Perspectives" which was authored by Mohamed Ariff.
The book captures the ups and downs of the Malaysian economy and Mohamed Ariff's various comment pieces he had contributed to the media between 1991 and middle of 2007.
