The economy is on track to meet its 6.0 percent economic growth target for 2007, but rising crude oil prices remain a threat, Prime Minister Abdullah Ahmad Badawi said today.

"I am happy with the third quarter GDP growth of 6.7 percent. However, we are also concerned with high oil prices," Abdullah told reporters.

Malaysia, a net exporter of petroleum, has set a GDP growth target of 6.0 percent for this year and 6.0-6.5 percent for 2008.

High oil prices translate into higher oil revenue for Malaysia but the government is under pressure to raise domestic fuel prices which are heavily subsidized.

The government has also signalled that gas and electricity price hikes are in the offing.

The timing of the increases is complicated by elections which were expected to be held in early 2007, but which observers say may now be delayed in order to space them as much as possible from the unpopular price hikes.

Malaysia imposed its highest-ever fuel price rises in February 2006, citing the spiralling cost of crude oil, and pledged to use the cost savings to boost the country's substandard transport system.

Following the sharp hike, political and civil groups organised rare demonstrations in the streets of the capital Kuala Lumpur to condemn the decision, arguing it was unnecessary as Malaysia is a net exporter of oil.

The last electricity tariff hike came in June 2006, when the government approved a 12 percent increase, the first in almost a decade.