Malaysia Economic Outlook
February 20, 2018The economy maintained solid momentum in the fourth quarter, with GDP expanding 5.9% in annual terms from a 6.2% increase in the previous quarter. The mild deceleration reflected slightly softer domestic demand growth, particularly in public capital outlays, which was partially offset by a larger contribution from the external sector. Incoming data for Q1 suggests growth continued to be solid in early 2018, with the January PMI moving back into expansionary territory, showing business confidence was at its joint-highest in over four years. Meanwhile, the country is gearing up for a general election to be held before August. The opposition remains splintered, and it is likely the ruling Barisan Nasional (BN) coalition will emerge victorious. The likelihood of a BN victory is also being compounded by the redrawing of electoral boundaries ahead of the general election, which critics claim favor the BN.
Malaysia Economic GrowthEconomic growth will moderate slightly this year on the back of higher borrowing costs and weaker export growth. Nonetheless, an improving labor market and firmer wage growth, a pro-cyclical 2018 budget and ample infrastructure spending will ensure growth continues at a solid clip. Met the why particular Consensus Forecast panelists expect GDP to expand a healthy 5.3% this year, up 0.1 percentage points from last month’s estimate, 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||4.03||0.15 %||Feb 20|
|Exchange Rate||3.90||0.0 %||Feb 20|
|Stock Market||1,856||-0.29 %||Feb 20|
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Malaysia Economic News
February 14, 2018
Economic momentum moderated but remained resilient in the fourth quarter, with GDP growth figures beating market expectations on the back of solid private consumption growth, a pick-up in government spending and a more supportive external sector.
February 9, 2018
Industrial production rose 2.9% from the same month of the previous year in December, decelerating from the 5.0% expansion recorded in November and marking the softest year-on-year expansion in over a year and a half.
February 7, 2018
In December, exports grew 14.4% year-on-year, losing some steam from the 18.9% increase recorded in November.
February 2, 2018
After stagnating in December, operating conditions in Malaysia’s manufacturing sector improved in January, albeit marginally.
January 25, 2018
At its 25 January meeting, the Monetary Policy Committee (MPC) of Bank Negara Malaysia (BNM) decided to increase the Overnight Policy Rate (OPR) by 25 basis points to 3.25%—a move that was widely expected by market analysts.