The first half of the year will be solid as the momentum we have seen in the last two quarters will carry growth over to the first half of 2006.

The full-year growth target can be quite easily met.

The high value of pharmaceutical exports can cause a lot of volatility in the numbers when they swing from month to month. Electronics exports show there is still strength in the technology sector and the trend is that we'll have a good first half.

These indicators tend to have a lead-lag of three to six months. We still may have sufficient strength in exports in the first quarter and even into the second.

Inflation is still a real and present threat to the economy.

Inflation is still higher than nominal interest rates, and this is a clear sign that monetary conditions are highly accommodative in Malaysia and the need for interest rates to return to a neutral level.

It should not be introduced at high levels, where it will shock the economy. Instead, the GST should be gradually eased in and the list of taxable goods expanded over time.

There is sufficient strength in the economy to take growth to at least five percent this year.

This is the start of a hiking cycle. A series of small hikes will follow until inflation falls below 3%.

This is broadly in line with my expectations as it shows the main engine of growth, electronics, is holding up very well. I wouldn't to be too worried about pharmaceuticals.