KUALA LUMPUR: Malaysia’s economic growth is expected to continue its strong momentum this year, projected to grow between 5.5 per cent and 6 per cent, Bank Negara Malaysia (BNM) Governor Tan Sri Muhammad Ibrahim said.
He said private consumption growth is expected to remain sustained, supported by continued growth in employment and income, lower inflation and improving sentiments.
The Malaysian economy expanded at its fastest pace in 3 years in 2017, and this trend is expected to continue this year.
“Malaysia is projected to grow between 5.5 per cent and 6 per cent in 2018. Private investment growth will also be sustained, underpinned by ongoing and new capital spending in both manufacturing and services sectors, and strengthened by continued positive business sentiments,” Muhammad said at a press conference to release the central bank’s 2017 Annual Report.
Apart from domestic demand, GDP growth will be supported by favourable external demand conditions with both gross exports and imports forecasted to grow at above-average trends in 2018.
“Headline inflation is projected to moderate in 2018, averaging between 2 and 3 per cent. The lower inflation compared to 2017 is due mainly to an expected smaller contribution from global energy and commodity prices,” he said.
Muhammad added the Ringgit will continue to strengthen in 2018 after a strong performance in 2017.
“The ringgit’s strength in 2017 and 2018 thus far, is a reflection of renewed interest in Malaysia’s assets following the robust domestic economic performance.
“Going forward, however, the ringgit could face renewed volatility arising from global factors,” he said, adding that the government’s measures will also increase household disposable income in 2018.
