MARKET TALK: Malaysia 1Q GDP Growth May Slow To 4.4% -RHB

Malaysia's GDP growth may slow down to 4.4% on year in 1Q from 5.2% in 4Q on the back of a slowdown in exports and a moderation in domestic demand, says RHB Research; earlier Malaysia reported a 0.2% on-year expansion in industrial production in January vs the median 0.3% contraction forecast by 11 economists surveyed by Dow Jones. The industrial production index rose 2.9% on year in December. "The sharp slowdown in industrial activities in January suggests that economic activities are likely to have been weakened further in the 1Q," says RHB in a note. Despite improvement in the U.S. economy and progress to fix the eurozone debt crisis, the house says "a number of risks remains and the global economy is still likely to expand at a more moderate pace in 2012. This will likely translate into a slower increase in the country's exports during the year." For the full year, RHB expects GDP growth to slow to 4.5% in 2012 from 5.1% in 2011.