Malaysia targets 4-4.5% GDP in 2016 - Strategist

Malaysia looks set to achieve the gross domestic product (GDP) target of between four and 4.5 percent in 2016 despite a weaker growth in regional economies, an economist said.

IQI Group Holdings chief economist/investment strategist Shan Saeed said Malaysia's economic growth has been positive despite regional uncertainties and prevailing market forces.

"It is important for the government to maintain confidence among investors in the midst of the economic challenges and sluggish growth on the global front," he told Bernama Friday.

Bank Negara Malaysia yesterday announced the country's economy grew 4.0 percent in the second quarter of 2016 compared with 4.2 percent in the first quarter, driven mainly by domestic demand, private consumption and investment.

Shan said it is vital for the country to maintain economic confidence in order to keep up with domestic consumption as it would help boost growth.

"Malaysia's economy is still growing and there are opportunities to be gained by boosting its position and focusing on trade within the ASEAN region," he added.

Shan said , Malaysia's economic performance in the second quarter was considered very good compared to that of the UK and Singapore.

It was reported that Singapore's economy grew 2.1 percent while the UK's economy rose 0.6 per cent in the second quarter of this year.