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How Government Policy has Shaped the Current Economic Outlook of Malaysia In this paper we will examine how government policy has shaped the current economic outlook of Malaysia. In the recent months, in particular, the first quarter of 2003, we have seen many events that contributed to the world economy downturn. Considering that the past year has already seen a global economic turndown, so far this year there have been no signs to show that the global economic performance will improve drastically. There is doubt from many parties that Malaysia will not achieve the forecasted growth of 4.5% in year 2003 GDP without any stimulus from the government to weather through the bad times. The two major events that have contributed to the economic slowdown in Malaysia are the US-Iraq war and Severe Acute Respiratory Syndrome (SARS) outbreak.
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