Malaysia’s Gross Domestic Product (GDP) forecast for 2009 was revised to between -5% to -4% from its earlier projection of -1% to 1%. This revision was made after the first quarter 2009 GDP shrank 6.2% and the second quarter, 3.9%. There are positive signs of the decline abating, and given time to enable the stabilisation measures to take its effect, we can be cautiously optimistic of a recovery in 2010.

This year will be a challenging one for the business sector. The ongoing global financial crisis will change the business landscape and will require our businesses to improve its competitiveness innovate, train and retrain its workforce to meet the external and domestic challenges. We must look for market niches in new potential growth areas and to build a long-term market strategy for sustainability.

Our Malaysian Government has put in place various measures to sustain strong business and consumer confidence in the country. These include the guarantee of all ringgit and foreign currency deposits in the banking system. Bank Negara has lowered the Overnight Policy Rate (OPR) to 2% in February this year, and the Statutory Reserve Requirement (SRR) to 1% from March 2009, in a move to lower the borrowing costs needed by the business sector. A RM67 billion stimulus package by our Government rolled out in November 2008 and March 2009 is also aimed at assisting the business sector to weather the current economic downturn. These aforesaid initiatives will, given time, play a critical role in Malaysia’s economic recovery.

I have pleasure to welcome on board, Puan Fatimah Sulaiman, the new Editor of MASSA newsletter, who took over from Cik Hamidah Tun Ghafar who retired at the last Annual General Meeting.

I would like to thank all the contributors for the many illuminating articles that have made our newsletter interesting. I sincerely hope that members will continue to tap on MASSA’s business network and linkages in the developing countries to expand their market outreach and make Malaysian products and services known to the world.

I take this occasion to wish all our Muslim members and readers, “Selamat Hari Raya Aidilfitri, Maaf Zahir Batin” and “Happy Deepavali” to our Hindu friends.

TAN SRI DATO’ AZMAN HASHIM
President