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THE MALAYSIAN ECONOMY: Developments and Challenges

Introduction

Like many economies in Southeast Asia, Malaysia currently faces a number of challenges that could have a significant impact on its economic growth and development.Despite the fact that 2007 was generally seen as a good year economically, events in the second half of the year, particularly the U.S. sub-prime mortgage crisis, and poor U.S. economic data could trigger a recession in the world's largest economy, which in turn could lead to a global slowdown in 2008. Added to these concerns are the high oil prices and rising food and commodity prices, which could stoke fears of global inflation. All these downside risks would clearly affect macroeconomic stability in the region. ...

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