Tuesday, May 28

Malaysia’s Economy Defies Odds with 3.3% Growth, Setting Optimistic Tone for 2024

Malaysia’s economy demonstrated resilience in the third quarter of 2023, expanding by 3.3% compared to the same period the previous year, surpassing the 3% median forecast in a Reuters economist survey.

Despite weak external demand impacting exports, domestic demand remained robust, with household spending supported by employment and wage growth.

Bank Negara Governor Datuk Abdul Rasheed Ghaffour projected a 4% expansion in 2023 and 4-5% in 2024, driven by domestic demand, infrastructure projects, and Budget 2024 measures.

“Growth will continue to be driven by the expansion in domestic demand amid steady employment and income prospects, particularly in domestic-oriented sectors.

“This growth performance along with other favourable economic developments would provide support to the ringgit,” he said in a statement.

While downside risks include weaker external demand, potential upside factors include increased tourism activity and accelerated investment projects.

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