Malaysia’s economy to grow 4.5% in 2013

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Malaysia’s GDP is expected to grow at a relatively moderate pace of 4.5 per cent next year, mainly due to lacklustre global demand amid a softer commodity outlook, says Hong Leong Investment Bank Research in a latest report.

The bank says while it remains confident that construction as well as oil and gas projects will help boost domestic sources of growth, the weaker global demand, especially for commodities, is expected to weigh in on Malaysia’s external sector.

Household consumption growth is also expected to soften in 2013 as asset inflation wanes, while an income boost from high commodity prices disappears. In the trade sector, Hong Leong expects export prices of commodities to come under pressure in 2013, given the subdued global demand, particularly weak demand from China as its economic growth remains in soft patch.

“With the assumption of lower commodity prices for 2013, Malaysia’s exports in nominal terms will be affected,” the research house said in its 2013 Economic Outlook report released on November 6.

Malaysia’s prime minister Datuk Seri Najib Razak had announced earlier this year that the government expects the Malaysian economy to grow between 4.5 per cent to 5.5 per cent in 2013.

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Reading Time: 1 minute

Malaysia’s GDP is expected to grow at a relatively moderate pace of 4.5 per cent next year, mainly due to lacklustre global demand amid a softer commodity outlook, says Hong Leong Investment Bank Research in a latest report.

Reading Time: 1 minute

Malaysia’s GDP is expected to grow at a relatively moderate pace of 4.5 per cent next year, mainly due to lacklustre global demand amid a softer commodity outlook, says Hong Leong Investment Bank Research in a latest report.

The bank says while it remains confident that construction as well as oil and gas projects will help boost domestic sources of growth, the weaker global demand, especially for commodities, is expected to weigh in on Malaysia’s external sector.

Household consumption growth is also expected to soften in 2013 as asset inflation wanes, while an income boost from high commodity prices disappears. In the trade sector, Hong Leong expects export prices of commodities to come under pressure in 2013, given the subdued global demand, particularly weak demand from China as its economic growth remains in soft patch.

“With the assumption of lower commodity prices for 2013, Malaysia’s exports in nominal terms will be affected,” the research house said in its 2013 Economic Outlook report released on November 6.

Malaysia’s prime minister Datuk Seri Najib Razak had announced earlier this year that the government expects the Malaysian economy to grow between 4.5 per cent to 5.5 per cent in 2013.

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