Malaysian Economy Outlook 2018

Malaysia s total investment to be lower this year but will recover.

Malaysian economy outlook 2018. Getting closer to high income status march 7 2018 malaysia s economy continues to perform strongly with higher than anticipated growth at 5 8 percent in 2017 and projected growth of 5 3 percent for 2018 according to the imf. Malaysia s near term economic outlook will be more dependent than usual on government measures to sustain private sector activity as the shock of covid 19 reduces export led growth and as a depleted fiscal space limits public investment led expansion. Anthony adds that the possibility of a recession will driven more by external noises as opposed to domestic issues. More foreign direct investment fdi into malaysia has increased 3 1 to rm31 7 billion in 2019 compared with rm30 7 billion in 2018 according to the department of statistics malaysia 11 june 2020 mida.

Outlook for 2018 2018 is expected to be a promising year for the malaysian economy. The global economy continues to grow at a moderate pace amid a brittle demand and lessened trade flows. Looking at 2018 full year gdp outlook our projection for malaysia s gdp is 4 8 5 while for 2019 is 4 2 4 4 on the back of a global growth of 3 7 for 2018 and 3 6 for 2019 he says. The external sector is expected to register a more moderate expansion in tandem with the moderation in global growth.

Private investment increased due to a higher volume of capital spending in the manufacturing and services sectors. The country is well on its way to achieving high income status. A slow recovery in key trading partners volatile commodity prices a prolonged health crisis and political turbulence all threaten to derail the recovery. While malaysia s economic growth remains resilient it began to moderate to 4 4 in the third quarter of 2018.

The malaysian economy against the backdrop of a challenging global environment the malaysian economy is expected to sustain its growth momentum expanding by 4 3 4 8 in 2019 2018. Over the longer term as malaysia converges with high income economies incremental growth. Malaysian economic outlook the malaysian economy is estimated to grow by 4 7 in 2018 pending the fourth quarter results. Private consumption was the main driver of economic growth due to the zeroization of the goods and services tax.

Malaysia economic growth the economy is seen shrinking markedly this year stricken by pandemic related containment measures and depressed oil prices. The momentum is expected to continue this year. 2018 as a whole malaysia s economy grew at 4 7 per cent with a value of gross domestic product gdp recorded rm1 23 trillion at constant prices and rm1 43 trillion at current prices. While activity is set to rebound next year risks to the outlook loom in the background.