Research houses foresee Malaysia's economy to improve in 2024
KUALA LUMPUR, Dec. 12 (Xinhua) -- Research houses have foreseen Malaysia's economy to improve in 2024, underpinned by resilient domestic demand and recovery in external demand.
CGS-CIMB said in its recent note that it estimated Malaysia's 2024 gross domestic product (GDP) growth to be at 4.6 percent.
The encouraging labor market as well as improvement in tourism-related sectors will continue to anchor the domestic demand.
It also expects external demand to stabilize following improved supply chain and slow demand recovery.
Challenges to growth, however, are policy shifts to more targeted subsidies and global economic headwinds affecting trade industries.
Despite the outlook of slower global economic growth, Maybank Investment Bank Research in its recent report expects Malaysia's real GDP growth to be firmer at 4.4 percent in 2024, underpinned by resilient consumer spending, pick-up in government consumption and private investment, plus recoveries in trade-related services and manufacturing industries, namely tourism and electronics.
Meanwhile, the Malaysian Industrial Development Finance (MIDF) Research in its recent note projected Malaysia's GDP growth to improve to 4.7 percent from projected growth rate of 4.2 percent in 2023.
The MIDF also noted that stabilization of monetary policy in major countries, a stronger recovery in China, and supportive global commodity prices are expected to boost Malaysia's external front in 2024.
UOB Global Economics and Markets Research expects Malaysia's annual growth to improve further to 4.6 percent in 2024, backed by a base case scenario of a soft landing in the global economy despite increasing global uncertainties.
According to the research house, positive catalysts to domestic growth include a slightly expansionary budget 2024 and initiatives outlined by Malaysian economic policies.
It said downside risks to its growth outlook for Malaysia could emanate from risks such as a potential fallout in the Middle East crisis, and over-restrictive global monetary policy conditions.