Malaysia world’s 88th most costly destination

New Sabah Times

KUALA LUMPUR: Malaysia has been placed 88th among the world’s most expensive destinations this year, up from 95th last year, according to a survey by the Economist Intelligence Unit (EIU).

The jump in ranking for Malaysia was mainly driven by the country’s economic growth, said EIU, a business information arm of the Economist Group which publishes “The Economist” magazine, in its latest “Worldwide Cost of Living” survey.

The higher ranking also meant that Kuala Lumpur is now among the emerging hubs which are seeing the cost of living catching up with more developed countries in Asia, EIU added.

Stable employment prospects, continuous income growth and a supportive financial environment are among the other reasons supporting the ranking, a local economist told Bernama when asked to comment on the survey.

“Low and stable interest rate is also becoming a solid support for the country’s economic growth,” he said.

The survey also showed rise in the cost of living at other Asean hubs like Singapore ranked 14th, Jakarta at 73rd, Bangkok at 92nd and Manila at 131st.

Bank Negara Malaysia, in a statement recently, painted a bright picture on the economic growth prospects for Malaysia.

The central bank said growth prospects are expected to remain favourable this year, backed by sustained private consumption and continued expansion in investment activity.

The country achieved a gross domestic product (GDP) growth of 5.9 percent last year and has targeted six percent growth for 2007.