The article discusses the country of Malaysia's economic growth in the year 2007 because of domestic demand and public investments. The 2008 gross domestic product projections are examined with risks taken into account such as a U.S. recession, unpredictable financial markets and higher oil and food prices. The Malaysian government's investment in the Iskandar Development Region in South Johor and the Northern Corridor Economic Region in the northern Peninsular Malaysia are discussed.