THE 2007 Budget was drafted against the background of an increasingly uncertain macro-economic environment. Acknowledging that, the Government has revised its 2006 estimates for real gross domestic product (GDP) growth down a tad to 5.8% from 6.0% previously.
But even the lower figure may prove too optimistic. The tech industry, which accounts for half of Malaysia’s exports, is stuck in a lull period and that will be reflected in weaker export growth that could extend well into the first half of 2007.