Merrill Lynch, an international merchant bank, has commended Malaysia on its economic performance, revising the forecast gross domestic product (GDP) growth upwards to 5.7% for 2007 and 6.3% for 2008 from the earlier 5.2% and 5.8% respectively.

Malaysia’s economic growth prospects in the coming years is positive, given that the country is undergoing long-term structural upturn.

Global investors have also renewed their interests in the country, following the recent implementation of a number of economic reforms, which include the restructuring of government-linked companies, liberalisation of foreign exchange and improved foreign relations, besides the reduction of fuel subsidies as well as the withdrawal of non-essential projects.

Merrill Lynch has also credited the performance and brighter prospects for the Malaysian economy to three other factors which are generally overlooked. These were Malaysia’s relatively weak exchange rate, the positive external shocks resulting in higher export prices for commodities and a change in the political regime.

All these factors, according to the bank, are currently working in unison, and this augurs well for Malaysia.