Annual Report

The Malaysian economy strengthened in 2006 with growth momentum, as measured by Gross Domestic Product, improving to 5.9% from 5.2% in the preceding year. Enhanced capital formation, underpinned by greater public sector presence, contributed to the sturdier performance in the year under review, increasing 7.9% compared to 4.7% in 2005. Significantly, the benign investment trend had more than offset the impact from the less than stellar contributions from consumption and external trade where both registered lower growth amidst the dampened sentiment in the wake of higher business costs.