Published September 26, 2008

Economic growth on track: Najib

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(PUTRAJAYA) Malaysia's economy is 'on track' to meet the government's growth forecast this year even as the US financial turmoil threatens global expansion, Finance Minister Najib Razak said yesterday.

'So far we are still able to achieve 5.7 per cent or 5.5 per cent growth,' Mr Najib, who is also deputy premier, said. He referred to different forecasts by the finance ministry and the central bank.

'We hope there will be no more disastrous news coming from the US affecting the global financial market,' he added.

Malaysia's government said last month that 2008 economic growth may slow to a three-year low of 5.7 per cent as exports ease and higher food and fuel prices leave consumers with less to spend.

The US housing slump that forced Lehman Brothers Holdings into bankruptcy and prompted the sale of Merrill Lynch & Co to Bank of America Corp has hurt exports from Singapore to Japan.

Prime Minister Abdullah Ahmad Badawi on Sept 17 gave Mr Najib the finance portfolio and took over the deputy premier's defence post. -- Bloomberg