Commentary: Anwar Ibrahim's struggle for economic rejuvenation in Malaysia

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KUALA LUMPUR: For the last three years, the Malaysian economy has kept its balance against a backdrop of protracted challenges ranging from a health crisis, political uncertainty and sharply rising prices that have plunged the country into the worst cost-of-living crisis ordinary citizens have ever faced.

Now, darker storm clouds are starting to form, as a global economic slowdown and tighter credit conditions point to a further weakening in the domestic economy. Malaysias economy expanded 5.6 per cent in the first quarter of the year, well above market expectations of a 4.8 per cent growth.

However, the picture is by no means upbeat, said BMI, a unit of the rating company Fitch Group. The first-quarter growth was sharply lower than the 7.1 per cent increase in the fourth quarter of last year.