Malaysia's economy expanded 8.9 percent in second quarter and could exceed the official growth target for the year, the central bank said Wednesday. Bank Negara Malaysia said the year-on-year growth eased from 10.1 percent in the first quarter _ the fastest expansion in a decade _ but remained robust, spurred by strong domestic and external demand. «The domestic economy is expected to remain strong, sustained by robust private sector demand,» the central bank said in a statement quoted by the Associated Press. Overall, the economy grew 9.5 percent in the first half of the year and could exceed the official 6 percent target for the full year, said Bank Negara Governor Zeti Akhtar Aziz. Manufacturing growth remained in the double digits, up 15.9 percent, slightly lower than 17 percent in the first quarter. The services sector grew 7.3 percent, construction growth moderated to 4.1 percent and agriculture to 2.4 percent Inflation crept up to 1.6 percent in the second quarter from 1.3 percent in the previous three months, largely due to a rise in the prices of food and drinks.
