KUALA LUMPUR (Jan 8): The economy may be showing signs of a slowdown but realistically there is still viable prospect for good growth this year, said CIMB Asean Research Institute (CARI) chairman Tan Sri Dr Munir Majid.
Concurring with the Deputy International Trade Minister Dr Ong Kian Ming's statement yesterday that there is no recession on the horizon this year, Munir also agrees that there are signs of the economy slowing.
"I would agree that there will be no recession but I think there are signs of it slowing down. You can see recent numerous downward revisions in forecasts by World Bank and IMF (International Monetary Fund) for example," he told reporters after a CARI briefing today called "Leveraging ASEAN solutions for trade through ASSIST".
The World Bank has cut Malaysia's gross domestic product (GDP) growth forecast for this year from 5.1% to 4.7% while the IMF has revised Malaysia's growth rate from 5% to 4.6%.
However, the new government's approach to have a more open and transparent administration is a plus for the economy, said Munir, adding that it is not yet factored in terms of economic growth projection.
"In Malaysia we all get scared to say negative things about our economy but we have to be objective about the matter of fact and accept that certain things are happening that are a challenge to the economy.
"But looking at the present government talking about having open tenders, how corruption will be reduced dramatically, there will be impact. It's just that we don't see that reflected in the numbers we are reading about now. It will take time," said Munir.
Another indicator of good prospects for the country is that foreign economic investments continue to sustain strongly; however, the government and private sector will have to work harder in ensuring the momentum increases, he said.
"We also seemed to be so concerned with the stock market. Yes, it is an indicator of economic performance, but it isn't the be all and end all. Sometimes we forget about the real economy, the investments that might come in which takes time to make an impact," he said.