Malaysia Can Grow 5 Percent and Handle Its Debts

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Malaysian Finance Minister Lim Guan Eng said on Thursday that the Southeast Asian country can sustain 5 percent annual economic growth as its new administration reviews mega projects and copes with hefty debts left by the previous government, the International New York Times reported on a Reuters story. In August, Malaysia cut its 2018 growth forecast to 5 percent, from 5.5-6.0 percent and reported much slower second-quarter expansion of 4.5 percent, compared to the previous period's 5.4 percent. Slower growth also signals the economic risks facing 93-year-old Mahathir Mohamad after his stunning election win in May that brought him brought to the premiership in Southeast Asia's third-largest economy. Lim, a former banker and chartered accountant, told the CLSA Investors' Forum in Hong Kong that there is an urgent need to review expensive development projects because Malaysia does not have "enough money to pay for them". Read more. (Subscription required.)