Malaysia Economy in 2011

In 1998 - interest rate was 11% before GDP contracted by 7%
In 2001 - interest rate was 5% when GDP near to 0% before rebounding to 5%
In 2010 - interest rate was 2.75% when GDP rebound from -ve to 6.5%

Clearly, 1998 seen a overheating economy. 2001 was a correction. 2010 faced external stress. What would be 2011?

The key is on external factors.

The interest rate has been relatively lower compared to 2001 even when it is fundamentally good. The inflation is only being suppressed by the fear of external environment. Once eased off, we would see inflation taking place at incredible speed. There were much talks about property bubbles in Malaysia. Indeed, the chances are high.

In 2011, I reckon inflation picking its speed up in H2 while bubbles forming by year end.