Malaysia has one of the most resilient economies in the region and is expected to be able to cushion the impact if the current economic turmoil goes any deeper.
Oxford Business Group (OBG) said relief can be seen, among others, through the innovative steps taken by the government in its bid to overcome the situation, especially with the implementation of the two stimulus packages worth a total of RM67 billion to fight out the slump.
“By steering Malaysia towards well-planned diversification and development at a suitable pace, the government along with the country’s strong economic fundamentals, have largely protected the country from the deteriorating effects of the global financial crisis,” OBG country director for Malaysia Neslihan Aydagul told Business Times in Kuala Lumpur.
She said although the export segment suffered a sharp decrease due to reduced demand from the global market, domestic demand has continued to spur.
“Strong domestic consumption is one of the factors that hinder the country from experiencing any severe effects from the turmoil,” she said.
Aydagul said the Malaysia’s competitive advantages include, among others, its natural resources, talented and competitive human resource pool, first-class infrastructure, stable political and strong national economic champion firms.
“Malaysia also has a strong and stable financial sector,” she said.
Moving forward, Aydagul said, OBG is confident Malaysia will continue to be a favourable investment destination for foreign investors in the future.
OBG is a global publishing, research and consultancy services firm. It publishes economic and political intelligence on the markets of Asia, Middle East, North and South Africa and Eastern Europe.
Through its range of print and online products, OBG offers comprehensive and accurate analysis of political, macroeconomic and sectoral developments, including banking, capital markets, energy, infrastructure, industry and insurance.
“The report Malaysia 2009″ is targeted for publication this month.