Malaysia said today it was confident of exceeding its 5.8 percent economic growth forecast for 2006.

"Our growth target for 2006 of 5.8 percent, we are very confident of achieving it and even exceeding it," Second Finance Minister Nor Mohamed Yakcop told reporters.

The government has predicted 6.0 percent growth for 2007.

However, a leading Malaysian forecaster, the Malaysian Institute of Economic Research (MIER), this month maintained its 5.2 percent growth prediction for 2007, with the pace to pick up to 5.5 percent in 2008.

Nor Mohamed also said he was not concerned about capital inflows, which Asian central bank governors have warned pose a risk to the region.

"We are not concerned. We are very happy with capital inflows. We will carry on with the policy to encourage capital inflows, portfolio inflows and FDI (foreign direct investment)," he said.