Malaysia's economy beat expectations to grow a robust 5.7 percent year-on-year in the second quarter of 2007, fueled by strong expansion in the services sector, the central bank said today.

It said higher mining and construction activities also contributed to the steady economic growth, with the full-year target remaining unchanged at six percent, despite fears over the US subprime and credit woes.

"Right now there is no significant spillover effect," central bank governor Zeti Akhtar Aziz told reporters.

The central bank revised up their growth figure for the first quarter to 5.5 percent - higher then the 5.3 percent reported in May - and said the economy grew 5.6 percent in the first half of 2007.

Zeti said the central bank would not take any measures to spur growth amid concerns over the US economy, as the Malaysian economy was moving ahead.

"We are not seeing any slowdown in the domestic economy. We are seeing increase in foreign direct investments (and) consumption activities remain robust ... All this is very good for our economy," Zeti said.

The services sector grew by 9.2 percent in the second quarter.