BN Governor & Deputy Minister: Malaysia not in recession

[pywong]

I wonder whether I should put this under Political Humour. Anyway, let's monitor and see. I will be happy to be proven wrong.

http://www.businesstimes.com.sg/sub/news/story/0,4574,306013,00.html?

Zeti sees no recession, ringgit rising
Monday November 17, 2008

(KUALA LUMPUR) Malaysia's economy is not expected to fall into recession and
its currency could gradually firm over the medium term, the central bank
chief was quoted as saying last Saturday.

Economic growth next year will hit the 3.5 per cent official target, with
policies in place to contain the fallout from the global slowdown, Bank
Negara governor Zeti Akhtar Aziz was quoted as saying by The Star newspaper.

'We are not in a recession and we don't expect to be in one,' Ms Zeti said.
'In our case, we took action very early so there is the potential for
containing the severity of the crisis.' She said the central bank was ready
to adjust monetary policy to support growth.

'We have said that we would take swift action to support the economy,' Ms
Zeti said, when asked where interest rates were headed. 'If it is necessary,
certainly we have the flexibility to do so.

The fast-growing South-east Asian economy has been bolstered by rocketing
crude oil and palm oil prices in recent years but some analysts say a sharp
slowdown is around the bend due the economy's heavy reliance on trade.
Malaysian bank RHB has forecast domestic economic growth at just 1.5 per
cent in 2009.

Malaysia's official interest rate has been at 3.5 per cent for more than two
years, putting it among Asia's lowest, and Ms Zeti reiterated an earlier
assessment that inflation had peaked and said it would ease to below 3 per
cent in the second half of 2009.

She also repeated a pledge to ensure an orderly foreign exchange market.'In
the near term, we are going to see volatility but the medium-term underlying
trend should be a gradual appreciation,' she said, referring to the ringgit
currency's movements. 'What is key to us is that the market remains orderly.
The central bank will be there to ensure orderly conditions.' - Reuters
____

Malaysia not facing a recession, says deputy minister
http://www.themalaysianinsider.com/index.php/business/12562-malaysia-not-facing-a-recession-says-deputy-minister

[lokgp]

Clearly, the Bank Negara doesn't have a clue what we are heading for. Or they are just saying the opposite to convince others (people on the street). Interest rates are going down! That is already written in government's play book. Good opportunity to get a lower fixed rate loan!

[pywong]

Sharper deterioration! They talk as if this was a sudden event. We have been warning about this since Apr 08.

Once the KLSE Index components are changed, investors are going to have a tough time comparing current performance ith past performance, unless they continue to maintain the old index in parallel for at least a year.

Thursday January 22 2009
Bursa revises benchmark index, Bank Negara cuts rates to 2.5pc

KUALA LUMPUR, Jan 22 — Bursa Malaysia will revise its benchmark index this year, cutting its constituents to 30 from 100 currently and imposing free float and liquidity requirements, in an attempt to increase the index's attractiveness for investors.

.... the central bank cut its benchmark interest rate by 75 basis points to 2.50 per cent yesterday, saying that the "sharper deterioration of the global economy is expected to have a greater impact on the Malaysian economy."

http://www.themalaysianinsider.com/index.php/business/16522-bursa-revises-benchmark-index-bank-negara-cuts-rates-to-25pc