The year 2010 closed with uncertainties and 2011 was ushered in with global challenges and competitive pressures on all fronts. However, there was an overall expectation of global economic recovery.

The 1st quarter of 2011 has just gone by. We note from the latest International Monetary Fund (IMF) World Economic Outlook 2011 that the world economy is in 2-speed recovery mode. While the advanced economies are still grappling with slow economic growth, high unemployment rates and uncertainties in the financial markets, the emerging markets are making a strong rebound. These emerging economies are expected to expand by 6.5% while the industrial economies will grow by only 2.4% in 2011, barring downside risks. The world economy is expected to grow by 4.5% in 2011.

In Malaysia, economic growth is projected to moderate to 5.5% for 2011. This growth will come from gains arising from the Government’s Economic Transformation Programme (ETP) which will drive domestic demand. As these programmes and projects under the 10th Malaysia Plan in the second half of 2011 gain traction, the growth momentum should pick up and become more evident in 2011.

Our South-South connections must continue to remain an integral part of our external trade and investment outreach. These south-south markets have emerged to become the new engine for world economic growth, given the growing population, its increasing affluence, rising disposable incomes and hence, market demand for good quality products and services. Malaysian products and services have been proven in these markets. Let us strive to better leverage on the areas of strength that we already possess and continue to seek new innovative ways and seize emerging opportunities to further expand and anchor Malaysian products and services in these markets.

TAN SRI AZMAN HASHIM
President