Strong exports suggest US, world economy recovering: PM
Prime Minister Dr Mahathir Mohamad said today strong exports posted for March will enhance Malaysia's growth and that the upturn in global demand suggests the US and world economies are recovering.
"It (the March trade data) will contribute to the growth of the first quarter GDP (gross domestic product)," Mahathir told a press conference.
"More importantly, it means the world economy is recovering, particularly the US."
Mahathir, who is also finance minister, said demand for semiconductors was stronger, noting that Silterra - maker of silicon wafers - was increasing its investments in Malaysia. He did not elaborate.
"The turnaround in the US economy and other countries will help our economy," Mahathir said.
He declined to say what the first quarter growth would likely be, saying: "I am a very cautious man."
Malaysia's trade surplus soared 34.2 percent in March from the month before, boosted by electrical and electronic products, government statistics showed Thursday.
Malaysia posted a surplus of RM5.1 billion in March from RM3.8 billion in February, marking the 53rd consecutive monthly trade surplus since November 1997, the International Trade and Industry Ministry said in a statement.
Top destinations
The US, Singapore, Japan, China and Hong Kong were the top five export destinations, jointly accounting for 59.5 percent of total exports in March.
Electrical and electronic products contributed 79.8 percent of Malaysia's exports to the United States, which rose by 34.6 percent after a sharp decline of 12 percent in January.
Malaysia posted a trade surplus of RM13.3 billion for the first quarter of 2002, with total exports standing at RM82.5 billion and imports at RM69.2 billion.
Last year, Malaysia's trade surplus dipped 13.1 percent to RM53.73 billion due to the effects of the US recession.
Mahathir previously predicted the economy would grow three percent this year, down from an earlier official forecast of four to five percent expansion.
The premier said the economy was likely to have grown 0.5-1.0 percent in 2001, down from an earlier government projection of 1.0-2.0 percent.
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