(MENAFN- Qatar News Agency) United Overseas Bank (UOB) expects Malaysia's economy to grow 5.2% next year, driven by higher exports and benefiting from stronger demand as key global economies recover. UOB Senior Economist Alvin Liew said the implementation of tax reforms, subsidy rationalisation and other initiatives in the government's Budget 2014 would bring higher revenues and contain fiscal deficit at 3.5% of the gross domestic product (GDP), according to Malaysia's (Bernama) News Agency. "Demand for Asian exports will increase with the economic recovery in the United States and a firm US dollar, directly benefiting countries with large export markets such as Malaysia," he told a media briefing on the 2014 Economic Outlook here Tuesday. Liew said the strengthening US dollar would cause the local note to ease to 3.30 against the greenback by the second quarter of 2014, but would not cause extreme volatile reactions. "We expect a broadly higher US dollar against Asian currencies next year as a result of the Federal Reserve (Fed) quantitative easing taper," he said.
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