Malaysia Economic Outlook
September 18, 2018Recent indicators suggest the economy has gained pace in Q3. In July, industrial production growth picked up on the back of faster expansions in the manufacturing and electricity sectors, while the trade surplus widened in the same month on stronger export growth. In addition, the manufacturing PMI returned to expansionary territory for the first time in seven months in August thanks to higher new orders and output. In September, the government announced the increase and standardization of the minimum wage from 1 January 2019, which bodes well for private consumption next year. In order to rein in spending, the government signed an agreement to postpone work on a high-speed railway between Kuala Lumpur and Singapore by two years, after initially announcing it would scrap the project entirely. Meanwhile, the sales and services tax (SST) was reinstated on 1 September. However, it will not cover the revenue shortfall from the zero-rating of the goods and services tax (GST).
Malaysia Economic GrowthIn H2 the economy should benefit from strong private consumption. However, economic activity is likely to moderate next year as rising trade tensions and a cooling Chinese economy dent foreign demand for Malaysian goods. Uncertainty over the fiscal position and a small revenue base pose downside risks to the outlook. Met the why particular Consensus Forecast panelists expect the economy to grow 5.0% in 2018 and 4.8% in 2019, which is down 0.1 percentage points from last month.
Malaysia Economy Data
5 years of Malaysia economic forecasts for more than 30 economic indicators.
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|Bond Yield||4.13||0.15 %||Oct 16|
|Exchange Rate||4.15||0.0 %||Oct 16|
|Stock Market||1,737||-0.29 %||Oct 16|
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Malaysia Economic News
October 11, 2018
Industrial production increased 2.2% in August over the same month a year ago, down from July’s 2.6% expansion.
October 5, 2018
Export growth moderated sharply in August to 4.4% year-on-year in USD value terms, down from July’s 15.9% expansion.
October 1, 2018
The manufacturing Purchasing Managers’ Index (PMI), produced by Nikkei and IHS Markit, increased to 51.5 in September from 51.2 in August.
September 19, 2018
Consumer prices increased 0.17% month-on-month in August, matching July’s print.
September 7, 2018
Industrial output expanded 2.6% year-on-year in July, up from 1.1% in June.