SINGAPORE, Nov 20 — The Malaysian economy is on track to achieve the full-year growth target of between 4.5 per cent and 5.0 per cent this year and the country is very unlikely to get into a twin deficit situation, said Minister in the Prime Minister’s Department Datuk Seri Abdul Wahid Omar.

“We are pleased Malaysia’s economy has been doing very well. In the third quarter we grew (our economy) by five per cent year on-year, compared to the first quarter’s 4.1 per cent and second quarter’s 4.4 per cent.

“With that performance we are very much on track to achieve our full-year growth target of between 4.5 per cent to 5.0 per cent this year,” he said at the Malaysia Business Forum here today.

He said Malaysia is committed to reducing its budget deficit to 3.5 per cent of GDP in 2014 and maintaining the government’s debt level.

Abdul Wahid is here together with Minister of International Trade Datuk Mustapa Mohamed, who led a trade and investment mission to Singapore.

The half-day business forum, hosted by the Malaysian Investment Development Authority in Singapore, was held in conjunction with the mission. Also present were Malaysia High Commissioner to Singapore Datuk Husni Zai Yaacob and Singapore Minister for Trade and Industry Lim Hng Kiang, who delivered the welcoming address.

Abdul Wahid, who is on his first visit to Singapore since taking his ministerial post five months ago, said: “One interesting development in the third quarter is that we have seen our surplus in our current account improving.”

He said there was a concern initially during the early part of this year when the country’s current account surplus was narrowing from RM8.7 billion in the first quarter to RM2.6 billion in the second quarter.

“Now we are pleased to note that this has since improved. In the third quarter, our current account surplus widened to RM9.8 billion.

“So what we are seeing here is that we should continue to see a sustainable surplus in our current account deficit and therefore we believe Malaysia is not likely to get into a twin deficit situation,” he said.

“In terms of the progress of the exports, we have been doing very well. We are also managing our imports to make sure that we don’t have any particular punching out of imports in any given quarter such that we get into a deficit situation,” he added. — Bernama