The economic situation in Malaysia is once again looking up. Shrinkage is slowing and there’s more cash for stimulus, positioning the country’s ETF for a potential year of growth in 2010.
In 2010, the Malaysian economy is expected to grow by 5%, up from the previous estimate of 2% to 3%. Second Finance Minister Husni Ahmad Hanadzlah says there are several projects in the pipeline awaiting implementation; they’re break ground in the first quarter, reports Royce Cheah for Reuters.
The private sector may contribute up to 3% of that growth next year. Some analysts are expecting this to be the main driver of the economic growth in coming months, reports New Straits Times.
Recent data showed that the Southeast Asian country’s economy shrank far less than expected in the third quarter, thanks to fiscal stimulus. Just in case, the country has the funds necessary for a third stimulus package, should a double-dip recession occur worldwide, reports The Star.
- iShares MSCI Malaysia Index (NYSEArca: EWM): up 51.7% year-to-date