Malaysia’s Economy is on a Steady Growth Path
Despite a more challenging and uncertain global trade and growth
environment, Malaysia’s economy will remain on a steady growth path in
2019, driven by a resilient private sector, Securities Commission Malaysia
said in its annual report published on 14 March.
Resilient expansion of the domestic services sector, especially in the
wholesale and retail trade sub-sectors, as well as sustained manufacturing
activities, will underpin Malaysia’s steady growth this year, according to
the Securities Commission of one of ASEAN’s largest economies.
“On the demand side, steady wage and employment growth will continue
to drive private consumption expansion while new and ongoing projects in
the services and manufacturing sectors will remain supportive of private
investment growth,” the report said.
The Malaysian government’s efforts to help boost the adoption of digital
technology are also expected to play a key role in future investments, the
Securities Commission (SC) said.
Referring to the overall economic growth in ASEAN, the SC expects the
region “to remain a global growth centre, anchored by firm
macroeconomic fundamentals as well as favourable demographic profile
and large infrastructure needs which will continue to support domestic
Malaysia’s economic growth picked up pace in the fourth quarter of 2018,
with gross domestic product (GDP) rising by 4.7 percent on the year, up
from 4.4-percent annual GDP growth in the third quarter of 2018, data
from the Central Bank of Malaysia showed in February.
Going forward, the Malaysian economy is expected to remain on a steady
growth path as private sector demand will continue to be the main driver
of growth, the central bank reckons.
The International Monetary Fund (IMF) also sees domestic demand and
private consumption as the key growth drivers of Malaysia’s economy.
“Domestic demand will remain the main driver of growth, with private
consumption and investment supported by an improved business
environment and investor confidence,” the IMF said on 11 March, further
noting that “The Malaysian economy has shown resilience and continues
to perform well.”