Kuala Lumpur (The Star/ANN) - Domestic demand continues to spur Asia's economic growth on the backdrop of slowing external demand and uncertainties in the financial markets.
Dr Zeti Akhtar Aziz, governor of Malaysia's central bank - Bank Negara - said that the growing importance of domestic demand in Asia was creating a huge cumulative domestic market and a case for greater regional integration.
"Greater regional and intra-regional integration of the emerging economies through the proliferation of interlocking networks of trade, investment and finance, have contributed to support economic activity in the emerging economies," Zeti said at the Khazanah Megatrends Forum 2012.
Zeti said the decline in external demand from the advanced economies had been partially offset by stronger domestic demand to spur economic activities in Malaysia.
This was due to the robust resumption of private consumption and investment activities and the diversification of exports to the regional economies in new product segments, she said.
"The wide-ranging reforms implemented (in Malaysia) since the Asian financial crisis have resulted in strengthened financial intermediaries and a more developed financial system," Zeti said.