UOB Economics and Markets Research said in a note that although Malaysia's first growth path could still be bumpy, growth in the second half is expected to see a meaningful pick-up as global monetary conditions are expected to ease and the global economy endeavors a soft landing.
"Thus, we maintain our 2024 gross domestic product (GDP) growth projection at 4.6 percent," said the research house. The Malaysian government has forecast a GDP growth of 4 percent to 5 percent this year.
Meanwhile, RHB Research said in a report that it also keeps Malaysia's GDP forecast at 4.6 percent year on year in 2024 after a growth of 3.7 percent in 2023.
It said recent data indicates that domestic confidence has shown signs of improvement.
Three key proxies, specifically higher manufacturing purchasing manager index, increased imports of capital and intermediate goods, and rising business confidence, suggest that manufacturers and businesses optimism is up, said RHB.
MIDF Research also said in a note that moving into 2024, the Malaysian economy is run by two engines, resilient domestic demand and external trade recovery.
According to the research house, the stabilization of monetary policy in major countries, better recovery in China, and supportive global commodity prices will boost Malaysia's external front in 2024.
Meanwhile, Malaysia's agriculture and mining sectors are projected to grow by 1.5 percent and 3.5 percent respectively for this year.
Manufacturing sector growth is also expected to register a faster pace of 4 percent for 2024, among others supported by an upcycle of electricals and electronics products and a rebound in primary exports.
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