Malaysia Economic Outlook
July 17, 2018Data for the second quarter suggests that growth remained robust. Industrial production was healthy in the first two months of Q2, with the average growth reading trending close to the average reading in Q1. Export growth also remained strong in the same period, and in May, the 12-month trade balance reached its highest level since January 2013. Moreover, retail sales expanded at a healthy pace in April–May over a year ago. On a less positive note, the manufacturing PMI remained below the 50-point mark throughout Q2, despite edging upwards in June after four consecutive declines. In June, although operating conditions deteriorated at a slower pace, output and new orders continued to drop. To push back against Chinese influence, the new government recently suspended China-backed projects totaling USD 22 billion. The move could strain relations with China and dampen fixed investment.
Malaysia Economic GrowthGoing forward, private consumption should drive economic growth, particularly in the near term given the recent zero-rating of the Goods and Services Tax (GST). However, fixed investment will likely suffer from the suspension and cancellation of previously approved projects in a bid to rein in government expenditure. Downside risks include high household debt servicing costs, policy uncertainty and a shaky fiscal situation which could dent private sector activity and investment. Met the why particular Consensus Forecast panelists expect the economy to grow 5.3% this year, unchanged from last month’s forecast, and 4.9% in 2019.
Malaysia Economy Data
5 years of Malaysia economic forecasts for more than 30 economic indicators.
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|Bond Yield||4.07||0.15 %||Aug 15|
|Exchange Rate||4.11||0.0 %||Aug 15|
|Stock Market||1,786||-0.29 %||Aug 15|
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Malaysia Economic News
August 17, 2018
Momentum in the Malaysian economy ebbed sharply in the second quarter, with growth of 4.5% year-on-year.
August 11, 2018
In annual terms, industrial output expanded 1.1% in June, decelerating markedly from 3.0% growth in May.
August 3, 2018
In June, export growth picked up steam thanks to skyrocketing foreign demand for refined petroleum products and for electrical and electronic products.
August 1, 2018
The Nikkei manufacturing Purchasing Managers’ Index (PMI), co-produced with IHS Markit, edged up from 49.5 in June to 49.7 in July, marking a five-month high.
July 18, 2018
Consumer prices dropped 1.24% month-on-month in June, sharply contrasting May’s 0.17% increase.