The Malaysian economy does not need any more stimulus packages and inflation in the country is unlikely to exceed 2 per cent, the country’s second finance minister said.
“Based on the fiscal policy and monetary policy, we believe inflation will remain at between 1 and 2 per cent and we don’t think there is a need for more stimulus packages,” Datuk Seri Ahmad Husni Hanadzlah (picture) told reporters on the sidelines of a business conference today.
Malaysia is expected to be among the last Asian economies to raise interest rates, with analysts expecting rate increases only in late 2010 on subdued inflationary pressure and weak demand conditions.
Asked if Malaysia was considering an international bond offering, Datuk Seri Husni told Reuters: “We are looking into it. I cannot give you the figures now.”
Malaysia last visited the offshore debt markets with a US$1.75 billion (RM6 billion) dollar bond sale in 2001.
Husni said the government was planning to divest stakes in 15-17 government-linked companies (GLC’s) across various sectors to boost competitiveness, and hoped to complete the process this year.
No investment bankers had been appointed for this yet, he added.
Last year, Prime Minister Datuk Seri Najib Razak asked state funds to sell down stakes in government-linked companies that dominated the market, to boost the free float of a stock exchange that has lagged Asian peers.
“We want the private sector to play a bigger role and we are quite happy with the progress so far,” Husni said.
On the dollar, Datuk Seri Husni said although the Malaysian ringgit was strong, it was difficult to predict future trends.
The ringgit has appreciated 2.12 per cent against the US dollar so far this year.
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2% inflation rate?
Maybe the prices in Putrajaya remains the same but elsewhere and EVERYTHING has gone up?!
Prices may not have gone up but have they seen the size of McDonald burgers lately as compared to 1 year ago?
Inflation is not about the amount of stuff you can buy but it is also the size you are getting.
Why not said zero per cent, at least want to bullshit, do it all the way.
Something wrong somewhere or everything wrong everywhere.
What type of stupid calculation is that? From the comic script?
This is the "trained" economist. His gdp projection fell from 9% to 6% to 5% in less than a week.
Now he tells us inflation will be between 1% to 2%.
He is using that as an excuse to maintain low interest rates, bcos if the interest rates are raised there will be havoc all around. For a start the homeowners will be hit badly.
This guy must be mad! Petrol, toll and electricity are going up this year and food subsidies are going to be cut back. So how can inflation be 1%-2% this year? Learn how to lie properly, Datuk.
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