PUTRAJAYA: With the strong backing of private investment and consumption, Malaysia is on track to achieve economy growth of 4.5 to 5.5 per cent.

Dragged down by weak export performance, Malaysia first quarter gross domestic product (GDP) only managed to expand at 4.1 per cent.

Second Finance Minister Datuk Seri Ahmad Husni Hanadzlah commended such economic performance, though in the midst of global economy slowdown.

"Compare with other medium to high income economies which grew at 1 to 2 per cent, 4.1 per cent is a good performance," he said after officiating the 19th World Savings Bank Institute (WSBI) Asia Pacific Group Meeting here, today.

Finance Ministry is projecting a GDP growth of between 4.5 per cent to 5.5 per cent. This will be spearheaded by robust private consumption and investment as well as government expenditure, said Husni.

"I believe due to the strength of private investment and consumption, we are not far from achieving 4.5 per cent target.

Hopefully, we will see better growth for the following quarters. If that happened, we will easily grow at the higher level of 4.5 and 5.5 per cent," he said.

Asked on the implementation timeline of goods and services tax (GST), Husni said the ministry is still studying its implications.

"(We have) not decided yet, (we) have to re-look earlier study. Now is in the process of looking at it from a holistic point of view," he said.

Besides generating additional revenue to the government, he believes GST could reduce government dependence on corporate and personal tax.

The proposed 4 per cent GST rate would be the neutral position, he said.