Economists maintain Malaysia's economic growth forecast in 2024

KUALA LUMPUR, Feb. 19 (Xinhua) -- Economists have maintained Malaysia's economic growth forecast in 2024, although the fourth quarter growth slipped below estimates.

Hong Leong Investment Bank said in a note that it maintained its expectation for Malaysia to grow at a faster pace of 4.8 percent year on year, led by continued household spending, tourism recovery and realization of investments.

The easing global interest rate environment, ebbing inflation figures and turnaround in trade activity are also expected to support growth, said the research house.

Kenanga Research said in a note that it maintained its view that Malaysia's GDP will grow strongly at 4.5 percent to 5 percent in 2024, primarily on the back of a recovery in the manufacturing sector and resilient domestic demand.

According to the research house, the growth is also supported by improvements in the external sector, especially expected recovery in China and technology upcycles, which subsequently will boost export-oriented industries.

It said the growth is also supported by higher investment realization, ongoing multi-year infrastructure projects, and the implementation of various projects under the major policy framework by the federal government.

UOB Global Economics & Markets Research said in a note that it is maintaining Malaysia's growth forecast of 4.6 percent for 2024.

According to the research house, Malaysia's slower-than-expected GDP growth in 2023 will provide a favorable base effect for this year's economic outlook, in addition to several positive growth catalysts including initiatives outlined in national master plans and realization of impressive investment approvals since 2021.

A slightly expansionary budget announced in October 2023 is also expected to help support the growth momentum this year, it said.

"Although the first half growth path could still be bumpy, the second half is expected to see a meaningful pick-up as global monetary conditions start to ease and the global economy holds up a soft landing," it said.

The Malaysian central bank announced last Friday that Malaysia's economy eased to 3.7 percent in 2023 from 8.7 percent in 2022, amid global trade challenges. The Malaysian economy expanded 3 percent in the fourth quarter of 2023.