Malaysia's broad money grows 13.4 percent in July vs 12.6 percent in June

Aug 30, 2007 - Malaysia's broad money supply, as measured by M3, grew at an annualized rate of 13.4 percent in July, the central bank said.

In June, M3 expanded by 12.6 percent.

"M3 expanded mainly on account of higher claims on the private sector," Bank Negara said in a statement released late Wednesday.

"Government operations also contributed to the expansion in M3, following larger development expenditure in July coupled with the salary increase for civil servants," the central bank said.

Last month, the government approved wage increases of 7.5-35 percent for the country's one million civil servants.

Narrow money, or M1, rose at an annualized rate of 18.5 percent in July as placements of demand deposits increased. In June, it expanded by 16.2 percent.

(1 US dollar = 3.50 ringgit)