January 15, 2009 16:14 PM

Economy Still Experiencing Growth, Says Muhyiddin

KUALA LUMPUR, Jan 15 (Bernama) -- International Trade and Industry Minister Tan Sri Muhyiddin Yassin today brushed aside suggestions that the country is slipping into a technical recession, saying the economy is still experiencing growth.

"From the government's standpoint, we are not going into a technical recession as the figures have not shown that we have moved downwards. There is still growth and it is expansionary," he said when asked on the issue here.

"The government has realistic appreciation on what is happening," he said at a press conference after delivering his keynote address at Asian Strategy & Leadership Institute's 11th Malaysian Strategic Outlook Conference.

"We have to be guarded on what is happening now," Muhyiddin said, adding that many people would not be able to foresee which particular sector is impacted.

"If you take the financial and banking sector, we are alright. As for the manufacturing sector, not all are impacted by the current global economic slowdown. Some sub-sectors are still experiencing growth," he said.

The minister said among those in manufacturing sector which have already been feeling the impact of the slowdown were the electronic and plastic sub-sectors.

"So, (we have to see) what the first quarter (of 2009) position will be, whether severe or not. We just need to wait and see," he said.

Asked if the government was ready to review the gross domestic product (GDP) growth forecast for 2009 after the Malaysian Institute of Economic Research downgraded its forecast to 1.3 percent from 3.4 percent previously, Muhyiddin said: "We will do that when it is necessary."

"We do have our own parameters, set of standards, before we make a revision. So, as of now the official announcement (of 3.5 percent) still stands," he said.

The public, he added, should accept what the government had announced as it was based on substantial and concrete considerations.

-- BERNAMA

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