As we enter the second quarter of 2012, we see the world economy continue to confront many challenges. The recovery of the global economy in 2012 continues to be dampened by the ongoing Eurozone sovereign debt crisis. Advanced economies continue to be burdened with high unemployment, continued deleveraging by banks and restrained credit conditions. These unfolding situations will have some impact on the emerging and developing economies in 2012.

The Malaysian economy, being a highly open one, is not insulated from these global developments. It continued to expand in 2011, albeit at a slower rate compared to 2010. Real Gross Domestic Product (GDP) grew 5.1% year-on-year in 2011. Growth for 2012 is expected to be between 4.5 – 5%, sustained by strong domestic demand driven by household and business spending and higher public sector consumption. This is made possible against a backdrop of moderating inflationary pressures, stable and accommodative interest rates and adequate liquidity in the market.

We continue to witness the increasing shift of axis of economic growth to Asia. Malaysia is well placed to be a beneficiary of this global shift to Asia. Our business connections in the developing countries can place us in a strategic position to enhance our competitiveness. We urge members to continue to develop and deepen their business linkages with the developing countries.

Together with the support and assistance from MITI and its agencies, MATRADE and MIDA, we must innovate new business strategies and develop win-win solutions to navigate the challenging business environment.

We are grateful for the support and assistance of the High Commissions and Embassies of the developing countries that are based in Malaysia as well as our Malaysian counterparts overseas and Malaysian business diaspora based in the developing countries. Through their presence, support and network, our roles in MASSA have been made more effective.

TAN SRI AZMAN HASHIM
President