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. FocusEconomics 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||3.94||0.15 %||Mar 15|
|Exchange Rate||3.92||0.0 %||Mar 15|
|Stock Market||1,845||-0.29 %||Mar 15|
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Malaysia Economic News
March 13, 2018
Industrial production expanded 3.0% from the same month of the previous year in January, coming in a tad above the 2.9% expansion recorded in December but falling well shy of market expectations of 7.1% growth in the month.
March 7, 2018
At its 7 March meeting, the Monetary Policy Committee (MPC) of Bank Negara Malaysia (BNM) decided to maintain the Overnight Policy Rate (OPR) unchanged at 3.25%, following the 25-basis point hike delivered at its previous meeting in January.
March 5, 2018
Exports jumped 33.0% in annual terms in January, coming in above the already solid 14.4% increase recorded in December, and totaling USD 20.9 billion.
March 1, 2018
Manufacturing conditions deteriorated marginally in February on the back of lower demand, following a feeble improvement in January.
February 28, 2018
Consumer prices rose 0.3% compared to the previous month in January, slightly above the 0.1% month-on-month increase recorded in December.