Malaysia and Singapore is so small, less than 10% that by next year,
Singapore will surely overtake Malaysia.
Malaysia with its policy of devaluations, will surely see a much
slower real growth of GDP in Singapore dollar terms as Malaysian
ringgit keeps on being devalued. In contrast, Singapore has been
slowing but surely strengthening its dollar so that it does not need a
high GDP growth in order to overtake Malaysia.
Malaysia with a population of 30 million, vs 3 million for Singapore.
The per capita income gap is very great indeed.
About 10 times higher for Singapore. This explains why almost every
Singaporean owns Iphone. Android has no chance in Singapore.
M'sia growth tops forecasts, economy ahead of S'pore
KUALA LUMPUR - Malaysia achieved better-than-expected economic growth
for last year, staying ahead of Singapore to retain the position of
South-east Asia's third-largest economy after Indonesia and Thailand.
Malaysia's Department of Statistics on Friday said the export-
dependent economy grew 4.8 per cent in the fourth quarter from the
corresponding period a year earlier, compared to 5.3 per cent in the
third quarter, driven by strong performance in the manufacturing and
Exports, however, continued to drag on growth, with shipments in the
fourth quarter expanding by only 3.7 per cent compared to 10.4 per
cent in the third.
For the full year, the Malaysian economy expanded 7.2 per cent, the
most in 10 years and a rebound from the contraction of 1.7 per cent
last year. Economists surveyed by Reuters had forecast that fourth
quarter growth moderated to 4.5 per cent from a year earlier and that
full-year growth would hit 7 per cent.
At current prices, Malaysian 2010 gross domestic product hit RM766
billion, or about S$321.2 billion. On Thursday, Singapore reported
last year's GDP of S$303.7 billion.
Acknowledging that growth would moderate this year, Bank Negara
Malaysia, the central bank, said the uneven global economic recovery
would have an impact on Malaysia and pointed out that uncertainties
remained over weak fiscal positions, high unemployment and constrained
lending conditions in advanced economies.
Bank Negara said: "The pace of growth of the Malaysian economy will be
affected by the environment of moderating demand. Growth will
nevertheless be supported by continued expansion in domestic demand."
Economists say the central bank's statement suggested it would likely
push back a rate hike to the second half of the year.
Bank Islam economist Azrul Azwar Ahmad Tajudin said: "Given the modest
economic outlook and with still manageable inflation outlook, I think
we may see the first rate hike only in the second half of this year,
towards the third quarter."
A Reuters poll of economists showed they expected the Malaysian
economy to grow 5.1 per cent this year. AGENCIES