ThxPORTAL - My OnlinE InvestmenT ProgresS

KUALA LUMPUR, Jan. 26 (Xinhua) -- The Malaysian Institute of Economic Research (MIER), an independent body undertaking research on economic issues, expects Malaysia's budget deficit to shrink to 5.6 percent of the gross domestic product (GDP) this year.

Its executive director Zakariah Abdul Rashid told reporters after the MIER National Economic Outlook Conference here on Tuesday that the reduction was made through the cut in the country 's expenditure.

Zakariah said that the cut in expenditure was expected to be much larger than the reduction in revenue this year, resulting in a smaller budget deficit.

He pointed out that in 2009, the Malaysian government expenditure was so high that the deficit was estimated at around 7. 4 percent of the GDP.

On growing concern over inflation, Zakariah said the inflation rate was quite stable in the meantime and should not be too much a concern to the consumers as the main focus laid within the economic growth.

Meanwhile, Zakariah stressed that liberalization of the country 's economy was necessary since it would attract private sector, deemed the main driver of the country's economy, to participate in the economic activities.

A sector must be made competitive before it was appealing to the investors, said Zakariah.

The MIER is an independent, non-profit organization devoted to economic, financial and business research that serves as a think- tank for the Malaysian government and the private sector.

Its research activities cover four divisions, namely Macroeconomic Surveillance and Forecasting, Policy Studies, Industry Studies, as well as Area Studies.

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