The ongoing financial turmoil fuelled by bankruptcies and bailouts in the United States marks the further unraveling of the United States credit crisis. This has resulted in continued market volatility around the globe. These challenging headwinds are expected to result in weakening global demand. Malaysia, whilst not directly affected, is also not spared from the spillover effects.

However, it is heartening to note that Malaysia’s economic fundamentals are still good. Its foreign reserves are high at US$119 billion, sufficient to finance more than nine months of retained imports and 4.2 times short-term external debt. There is also sufficient liquidity in our system. Our export markets are highly diversified and the domestic sector continues to be one of the main sources of growth. Overall, the Malaysian economy had performed commendably, achieving a strong growth of 7.2% in the first half of 2008 in spite of inflationary pressures and the weakening global demand.

Going forward, we must remain vigilant to emerging developments. We must quicken our efforts to remain competitive and yet, nimble enough to seize emerging business opportunities as they arise. The current global financial turmoil and credit crunch may offer great opportunities for Malaysians to invest in some developing economies.

In this context, MASSA will continue in its efforts to avail to members the information on South-South developments and keep members updated on happenings via our weekly news briefs.

I take this occasion to wish our members and readers a “Selamat Hari Raya Aidil Fitri” and “Happy Deepavali”!

TAN SRI DATO’ AZMAN HASHIM
President