Malaysia will keep a confortable reserve power margin of 30 percent even though the economy faces a slowdown due to global uncertainties, a senior minister said.

Leo Moggie, minister of energy, communication and multimedia said it was in the best interest of Malaysia to keep the reserve because it was tied to the world economy.

"It is the best interest of Malaysia to have a 30 percent reserve in power capacity in anticipation of a global rebound," he said in response to a reporter's question late yesterday.

"Historically, Malaysia's economic growth will expand in tandem with global economic growth."

Safe approach

Energy ministers from the 10-member Association of Southeast Asian Nations are participating in Langkawi today for a one-day annual meeting on energy cooperation and security.

Moggie said Malaysia preferred to adopt a safe approach to maintain a confortable margin.

"That is a cost we bear but we feel more confortable if we have a healthy reserve," he said.

Last month Prime Minister Dr Mahathir Mohamad said he was confident Malaysia's economic growth could surpass the official forecast of 4.5 percent for 2003.

The central bank has cut its GDP growth forecast to 4.5 percent this year from previous estimates of 6.0 percent to 6.5 percent due to the Iraq war and the outbreak of the deadly Severe Acute Respiratory Syndrome.

Economists, however, have expressed caution, saying it would still be tough to reach the targeted 4.5 percent growth given global economic uncertainties and renewed threats of terrorist attacks. - AFP