Our Gross Domestic Product (GDP) in the second quarter (2Q2011) moderated to 4% compared to 4.9% in the first quarter (1Q2011), dampened by a slowdown in the manufacturing sector and a weaker external environment that has been impacted by disruptions of the supply chain following the natural disaster in Japan, political uprising in the Middle East, the European debt woes and the recent financial turmoil driven by the US credit rating downgrade. The second half growth for Malaysia is expected to be sustained by private consumption, domestic demand and the Economic Transformation Programme (ETP) projects. With this, Gross Domestic Product (GDP) growth for 2011 will likely be a modest 5%.

Going forward, the global events afflicting the aforementioned developed countries certainly will pose a risk to the rest of the world. Malaysia is a small, open economy that is heavily export-driven and thus, will not be insulated from these external risks. Signs are clear that different strategies will need to be pursued in such times of economic uncertainties. We will need to navigate these unchartered, rapidly changing and often unpredictable times with a clear and focused goal in hand.

In these circumstances, South-South business remains a viable proposition. We need to hone our production capabilities, streamline and optimise manufacturing facilities and look for synergistic benefits and develop new markets with our South-South partners. MASSA is committed to assist members in this endeavour.

We also need to engage with our Government and the Governments of the South-South countries to create a win-win environment that remains supportive of cross border business, unlock new business possibilities and to create sustainable demand for Malaysian products and services.

I take this occasion to wish all our Muslim members and readers “Selamat Hari Raya Aidil Fitri, Maaf Zahir Batin” this festive season.

TAN SRI AZMAN HASHIM
President