Malaysia’s economists raise growth forecasts

Malaysia’s economic prospects continue to improve, with economists revising their growth forecasts upwards following a stronger-than-expected first quarter performance, Xinhua reported on Monday.

Maybank Investment Bank is the most bullish, raising GDP growth forecasts for 2024 and 2025 to 4.7 per cent and 5.1 per cent, driven by increased private investment in construction and machinery.

Malaysia’s economic prospects continue to improve, with economists revising their growth forecasts upward following a stronger-than-expected first quarter performance.

Kenanga Research maintains its 2024 GDP growth forecast at 4.5 per cent to five per cent, driven by robust domestic demand. The services sector, fuelled by resilient consumer spending, is a key contributor.

Additionally, an increase in tourist arrivals and a healthy labour market are expected to further support growth. Kenanga also predicts a significant recovery in export-oriented industries later this year, but warns that geopolitical risks could disrupt this momentum.

Hong Leong Investment Bank Research also forecasts a 4.8 per cent GDP growth for 2024. They anticipate strong private consumption, fuelled by rising employment and wages, and a pick-up in investment activity.