Malaysia can achieve its growth target of 4.5 percent this year despite the recent Sars crisis, Prime Minister Dr Mahathir Mohamad said today.

"It is achievable unless there are some other diseases or wars, which are unpredictable. Everything else being as it is, we should achieve the 4.5 percent," he was quoted as saying by Bernama news agency.

The prime minister noted that Sars affected not only Malaysia but also most East Asian countries.

The government in May unveiled a RM7.3 billion stimulus package to bolster the economy and cut its growth forecast to 4.5 percent from an earlier estimate of 6.0-6.5 percent.

Trade boost

Earlier, the international trade ministry said the country's trade surplus rose in June, taking the year-on-year increase for the first six months to 61.4 percent.

The June surplus of RM6.77 billion, compared with a RM6.35 billion surplus in May, marked the sixty-eighth consecutive monthly trade surplus, the International Trade and Industry Ministry said in a statement.

Exports in June rose by a marginal 0.4 percent month-on-month to RM30.88 billion but imports fell 1.2 percent to RM24.11 billion, the ministry said.

The export growth was supported by higher shipments of electrical and electronics products, liquefied natural gas, machinery, appliances and parts, textiles and clothing, as well as optical and scientific equipment, which helped offset declines in other sectors.

Largest market

June imports contracted as a decline in intermediate goods offset an increase in imports of capital goods and consumption goods.

For the six months to June, the trade surplus rose 61.4 percent year-on-year to RM36.61 billion, with total exports rising 6.9 percent to RM180.86 billion and imports declining 1.6 percent to RM144.26 billion, the ministry said.

Countries in the Association of Southeast Asian Nations (Asean) remained Malaysia's largest export market in June, absorbing 25.2 percent or RM7.80 billion of total exports, a decline of 1.8 percent over May.

Exports to the United States increased by 7.3 percent to RM5.58 billion in June after declining for the previous two consecutive months.

Exports were also up to Japan (2.7 percent) and Hong Kong (4.2 percent) but were down to the European Union (by 2.6 percent) and China (13.4 percent).

The decline in exports to China was attributed mainly to lower exports of electrical and electronic products, crude petroleum and palm oil, while higher exports were registered for chemicals and chemical products and petroleum products. - AFP