KUALA LUMPUR (AFP) - Malaysia's vehicle sales are expected to fall 12.4 percent in 2009 due to a slowing economy and poor consumer sentiment amid the global economic slump, an auto industry group said Wednesday.

"Consumers are expected to put off buying motor vehicles as we (Malaysia) will experience a slower economic growth," Aishah Ahmad, president of the Malaysian Automotive Association, told AFP.

"People will hold back buying (vehicles) due to employment market uncertainty," she added.

The industry group forecast sales at 480,000 units for 2009, down from 548,115 last year.

Malaysia's economic growth is expected to slow down to 3.5 percent this year from an estimated 5.0-5.5 percent last year.

For 2008, however, auto sales in Southeast Asia's biggest passenger car market surged 12.5 percent, higher than the 510,000 units forecast earlier, led by strong economic growth and positive consumer sentiment in the first three quarters, the association said in a statement.

Aishah said that 2008 sales were the second highest after 2005, when 552,316 vehicles were sold.

The industry chief said despite weak sentiments, the sector was unlikely to see the layoffs or sharp cuts in production being experienced by auto giants in the United States and Europe.

"We do not expect industry players to lay off their workers. So far there have not been any layoffs. But they will watch their costs closely," Aishah said.

Europe's leading auto maker Volkswagen said Tuesday it would idle about two thirds of its 92,000 German workforce for one week next month as it cuts production amid an economic slowdown.

Aishah said Malaysian manufacturers including Proton and Perodua would have to roll out new modals and produce compact size vehicles "to sustain buying interest".

"Everybody will be hit in 2009. But manufacturers and franchise holders who launch new models, manage costs and who have good brand names will be less hit," she said.