Malaysia Economic Outlook
May 22, 2018In a surprise result, the Barisan Nasional coalition was ousted from power for the first time since Malaysia gained independence in 1957. In the 9 May national election, the opposition coalition Pakatan Harapan (PH), led by former prime minister Mahathir Bin Mohamad, won a majority in parliament. The PH victory has increased policy uncertainty against a backdrop of moderating economic momentum. In the first quarter of the year, the economy decelerated for the second consecutive quarter, weighed down by pre-election uncertainty as fixed investment virtually came to a standstill. Private consumption, however, remained resilient. Although fundamentals remain robust, economic activity in Q2 will likely be dampened by political uncertainty. In April, the manufacturing PMI dropped to a six-month low, and business conditions deteriorated for the third consecutive month.
Malaysia Economic GrowthEconomic growth should remain solid this year despite a moderation in demand from China. Private expenditure would likely be boosted if the new government reinstates fuel subsidies and abolishes the Goods and Services Tax, although households’ higher debt servicing costs could hold back growth. Furthermore, uncertainty over the new government’s fiscal stance could dampen fixed investment and threaten the country’s credit rating, while government consumption could suffer from disruptions to previously planned projects. Met the why particular Consensus Forecast panelists expect the economy to grow 5.3% this year, unchanged from last month’s forecast, and 5.0% in 2019.
Malaysia Economy Data
5 years of Malaysia economic forecasts for more than 30 economic indicators.
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|Bond Yield||4.21||0.15 %||May 21|
|Exchange Rate||3.98||0.0 %||May 21|
|Stock Market||1,854||-0.29 %||May 21|
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Malaysia Economic News
May 23, 2018
The consumer price index was flat in April, contrasting the 0.33% month-on-month drop in prices recorded in the prior month.
May 18, 2018
Malaysian exports picked up steam in March, growing 16.1% over a year ago (February: +12.0% year-on-year).
May 17, 2018
Growth in the Malaysian economy moderated for a second consecutive quarter in the first quarter of this year.
May 11, 2018
In the final month of the first quarter, industrial production increased 3.1% year-on-year.
Malaysia: BNM holds fire as widely expected, but unexpected election result casts uncertainty over the economic outlook
May 11, 2018
At its 11 May meeting, the Monetary Policy Committee (MPC) of Bank Negara Malaysia (BNM) held fire and kept the Overnight Policy Rate (OPR) unchanged at 3.25%, as widely expected by market analysts.