The economic growth rate will speed up in the second half of this year thanks to the rollout of major projects under a national development plan, a cabinet minister said today.

Effendi Norwawi, a minister in the prime minister's department, said that the 20 projects under the Ninth Malaysia Plan and a rise in construction activity would spur the economy.

"There is all round good news in the country. Government revenue has increased of late and the stock market touched its historical highs recently," he said according to the state Bernama news agency.

Malaysia in September scaled back its 2006 economic growth forecast to 5.8 percent from 6.0 percent, citing challenges including high oil prices and competition from China and India.

The economy grew by 5.5 percent in the first quarter of 2006 and 5.9 percent in the second quarter. Growth reached 5.2 percent in 2005.