The Malaysian economy recorded a growth of 4.8% in the fourth quarter of 2010

The Malaysian economy registered a growth of 4.8% in the fourth quarter of 2010. Higher private and public sector spending contributed to the expansion in domestic demand. The slower growth in the global economy, however, had led to weaker growth in external demand.

Nevertheless, steady growth in the domestic economy has continued to attract inflows of foreign funds into the domestic equity and bond markets. The international reserves of Bank Negara Malaysia amounted to RM328.6 billion (equivalent to USD106.5 billion) as at 31 December 2010. This level of reserves has taken into account the quarterly adjustment for foreign exchange revaluation gain, following the strengthening of most major currencies against the ringgit during the quarter. As at 31 January 2011, the reserves position amounted to RM333.5 billion (equivalent to USD108.1 billion), sufficient to finance 8.7 months of retained imports and is 4.2 times the short-term external debt.

Source: Bank Negara, Malaysia