Malaysia Economic Outlook
April 24, 2018The incumbent Barisan Nasional coalition will face an unprecedented challenge in the 9 May national election. The main opposition group, Pakatan Harapan, has found in former prime minister Mohamad Mahathir a solid candidate to win over Malay voters unhappy with rising living costs and financial scandals surrounding the current government. That said, the opposition remains split, while contentious lawmaking in recent weeks has improved the incumbent coalition’s chances. The election will take place against a backdrop of solid economic momentum. Industrial production is holding up, while tight labor conditions and healthy manufacturing wage gains are supporting private spending. In the months to February, exports proved resilient against a strong ringgit, while fiscal spending ahead of election day and softening inflation are expected to have supported households in the first quarter.
Malaysia Economic GrowthA broad-based, if moderate, slowdown is expected this year, the result of waning Chinese demand and rising household debt servicing costs. The government’s commitment to its fiscal deficit target of 2.8% of GDP this year also implies a severe consolidation effort in H2 after front-loading expenditures in H1. That said, underlying fundamentals remain upbeat, and our panel expects the economy to expand a strong 5.3% this year, unchanged from last month’s estimate. For 2019, panelists see growth at 5.0%.
Malaysia Economy Data
5 years of Malaysia economic forecasts for more than 30 economic indicators.
Get a sample report showing all the data and analysis covered in our Regional, Country and Commodities reports.
|Bond Yield||4.20||0.15 %||May 16|
|Exchange Rate||3.97||0.0 %||May 16|
|Stock Market||1,858||-0.29 %||May 16|
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Malaysia Economic News
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.
May 2, 2018
Manufacturing activity in Malaysia started the second quarter on a weak note.