Impressed with Malaysia's development and economic growth, the Saudis regard the country as the most developed Islamic country in the world, Bernama news agency reported on Thursday. Malaysia's ambassador extraordinary and plenipotentiary, and permanent representative to Saudi Arabia, Associate Professor Datuk Syed Omar Al Saggaf said the Saudis were keen to learn Malaysia's success story. “So they are looking forward to learn from the Malaysian experience, particularly in terms of technology know-how, including in the agriculture sector, among others,” he told Bernama. “They are aware that Malaysia has conducted research and development in many areas and they also try to learn from the country how it managed to develop and survive from the global economic crisis within a short span of time,” he said. Syed Omar also cited an example of Malaysia managing to attract tourists in its effort to promote health tourism. “In the past, tourists have gone to Germany for the purpose but now it seems that the industry is growing in Malaysia,” he said. Syed Omar also said that the Saudis were also keen to learn from Malaysia's experience in overcoming the global financial crisis and how it was now on the road to economic recovery. According to the World Bank, the Malaysia's gross domestic product (GDP) Malaysia expanded at an annual rate of 2.20 percent in the last quarter. Its GDP is worth $195 billion or 0.31 per cent of the world economy. Being a rapidly developing economy in Asia, Malaysia, a middle-income country, has transformed itself since the 1970s from a producer of raw materials into an emerging multi-sector economy. The Malaysian government, under the leadership of Prime Minister Datuk Seri Najib Tun Razak, is continuing efforts to boost domestic demand to wean the economy off its dependence on exports although currently its exports, particularly electronics, remain a significant driver of the economy. Tun Abdullah Ahmad Badawi, adviser of Corridor Development in Malaysia, is leading the ECER Development Council (ECERDC) investment mission to West Asia, including Abu Dhabi, Riyadh and Jeddah from May 7 to 17. The mission is a follow-up to Najib's earlier visit to Saudi Arabia in January. Bank Negara Malaysia increases interest rate Malaysia's central bank on Thursday raised its key interest rate for the second since March, spurred by the fastest economic expansion in a decade in the first quarter. Prime Minister Najib Razak, who is also finance minister, said gross domestic product grew 10.1 percent year-on-year, accelerating from a 4.5 percent expansion in the last quarter of 2009. It was the fastest growth since the first quarter of 2000. The government is now targeting six percent growth for the full year, up from its earlier forecast of 4.5-5.5 percent, he said. This was the second increase to the forecast since March. Bank Negara Malaysia meanwhile, announced it was raising its overnight policy rate - used by commercial banks to set lending rates - by a quarter percentage point to 2.5 percent. The policy rate still remains low compared to 2008 when it was 3.50 percent. Economists said the rate hike was widely expected and in line with moves by governments and central banks in the region to withdraw stimulus measures amid the global economic recovery. The strong growth in the first quarter was above market expectations but not surprising given the low base from the first quarter last year when the economic shrank by 6.2 percent, they said. “There are concerns that growth will now slow in second half amid uncertainties from the euro zone crisis,” said Wan Suhaimi Saidi, economist with Kenanga Investment Bank. The central bank may take a pause from raising interest rates if the global economic recovery is hampered, he said.
