Malaysia Economic Outlook
December 13, 2018The economy expanded at a fractionally slower pace in annual terms in the third quarter compared to the second quarter, owing to a drag from the external sector. Nevertheless, economic growth remained robust, underpinned by domestic demand. Private consumption performed particularly well and benefited from the zero-rating of the goods and services tax on 1 June; however, foreign demand for Malaysian goods eased markedly and net exports subtracted from the economy as a result. Looking at the final quarter, available data sends mixed signals. While the manufacturing PMI dropped further below the crucial 50-point mark in November, the external sector’s performance improved in October and registered the largest trade surplus in seven years amid strong export growth. Meanwhile, in early December, Malaysian police filed criminal charges against five people—including the former prime minister—over the 1MDB scandal, which saw large sums of money being swindled from a government fund. This could increase political tension and instability.
Malaysia Economic GrowthEconomic growth is expected to remain robust in 2019, although the pace of growth in the economy is seen moderating slightly from 2018. Domestic demand should firm up on solid government consumption and stronger growth in fixed investment. However, household consumption growth will likely ease after a strong 2018. Meanwhile, the uncertain impact of the more expansionary fiscal stance on government finances, lingering trade tensions and financial market volatility all threaten the outlook. Met the why particular Consensus Forecast panelists expect the economy to grow 4.6% in 2019, which is down 0.1 percentage points from last month’s forecast, and 4.4% in 2020.
Malaysia Economy Data
5 years of Malaysia economic forecasts for more than 30 economic indicators.
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|Bond Yield||4.11||0.15 %||Dec 14|
|Exchange Rate||4.19||0.0 %||Dec 14|
|Stock Market||1,662||-0.29 %||Dec 14|
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Malaysia Economic News
December 12, 2018
Growth in industrial production accelerated rapidly to 4.2% in October over a year ago, up from 2.3% in September.
December 5, 2018
Malaysian export growth accelerated markedly from a revised 7.9% in September (previously reported: +8.0% year-on-year) to 19.6% in October over the same month a year ago in USD value terms.
December 3, 2018
The manufacturing Purchasing Managers’ Index (PMI), produced by Nikkei and IHS Markit, dropped from 49.2 in October to 48.2 in November.
Malaysia: Inflation picks up in October following the reinstatement of the sales and services tax on 1 September
November 23, 2018
Consumer prices rose 0.17% in October over the prior month, down from September’s 0.42% increase.
November 16, 2018
Growth in the Malaysian economy eased slightly to 4.4% in the third quarter over the same period a year ago, which is fractionally down from the 4.5% year-on-year expansion in the second quarter and marks a two-year low.