The impact of economic slowdown in Europe on Malaysia will not be too severe as the implemention of domestic stimulus measures is proceeding smoothly.

“Realistically, an economic slowdown in Europe will surely affect us but we need to see how bad the situation is and how long it will be,” said Deputy Finance Minister Awang Adek Hussin after inspecting the site of Labuan International School project in Labuan today.

He said the country should not experience another slowdown unlike what had happened in the past since most of its trade partners were in the Asian region which included China and Indonesia, as well as United States.

“The government will do its best at the national level and has so far been able to stimulate growth,” he said, describing the 10.1 percent economic expansion in the first quarter as encouraging.

“For the second quarter, it may not be 10 percent but it will still be considered high and encouraging. The percentage will be announced soon,” he said.

Awang said several economists had forecast that Malaysia would record a high growth although the government’s figure was still considered low. “Our economic growth forecast for this year is still six percent,” he added.

- Bernama