The Malaysian economy grew slower at 5.2% y-o-y in 4Q2011 compared to 5.8% y-o-y growth observed in 3Q2011. This allowed the economy to grow at an annual rate of 5.1%. The growth was primarily driven by the domestic economy while the trade channel continued to exhibit weak growth, reflecting the stark reality of a deteriorating global economy. Incorporating our expectation of a global economic slowdown, we project the economy to grow at a slower pace of approximately 4.0% in 2012.

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