Asia Economy

Despite an uncertain international climate, Malaysia is set to put in another strong economic performance this year. While growth is not expected to hit the heights achieved in recent years, a rate of 4-5% will serve to keep Malaysia on the right track.

Sabah’s economy is off to a strong start this year, owing to investments worth several billion ringgit secured in the first quarter of 2012, as well as an economic plan focused on creating wealth and empowering the business community.

Thailand’s economy appears to be regaining momentum following last year’s devastating floods that adversely affected exports and GDP. Consumer demand is on the rise and the state-backed rebuilding programme is channelling funds into infrastructure. There are still concerns, however, over the sustainability of the recovery if some of the country’s major markets fall back into recession.

A combination of strong consumer demand, increased state investment and sound monetary policy have combined to put the Philippines’ economy on course for a strong performance this year, leading analysts and financial institutions to revise their growth forecasts upwards to near 5%.

Papua New Guinea’s recent surge in natural resource projects has had a spin-off effect on other sectors, thus giving the country a positive near-term outlook for its economy, which is expected to see GDP growth reach 8% this year. However, the government has been advised to tighten its management of revenues from mining and natural gas projects, as well as curtail spending to ensure expansion remains stable moving forward.

Efforts to boost the role of the private sector in Brunei Darussalam are set to be stepped up with the government’s new budget, rolled out on April 1, that includes tax reductions and incentives aimed at supporting business development.