Malaysia’s GDP growth this year seen at 5.2%, lower than 2017

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Kuala Lumour’s busy district of Bukit Bintang

Malaysia is expected to maintain a robust economic momentum but will grow slower than last year, according to estimations by Moody’s Investors Service issued on February 20.

The rating agency said it believed that Malaysia’s robust gross domestic product (GDP) growth seen in 2017 would likely continue into 2018 and over the medium term, supporting the sovereign’s credit profile. However, it would likely be slower at 5.2 per cent compared to the 5.9 per cent recorded by the central bank in 2017.

“Malaysia’s GDP growth should average 5.2 per cent in 2018, underpinned by a pipeline of large infrastructure projects that will stimulate public and private investment,” a Moody’s report said.

However, although household debt level in Malaysia has moderated, it is still relatively high given Malaysia’s income levels. This trend may continue to pose challenges to the country’s macro-stability, Moody’s said.

Malaysia’s outstanding household debt as at the end of 2017 was 84.3 per cent of GDP, down from 88.4 per cent as of end 2016.

Meanwhile, Malaysia‘s Department of Statistics said the country was capable of achieving a GDP of two trillion ringgit ($512 billion) by 2022 as compared to 1.35 trillion ringgit ($346 billion) in 2017 and 1.23 trillion ringgit ($315 billion) in 2016 in case the annual growth rate is maintained at between five and six per cent.

According to chief statistician Mohd Uzir Mahidin, the country was on the right track to achieving this target based on its strong economic position.

“With the ongoing efforts, we hope to achieve two trillion ringgit GDP by 2022,” Mahidin said, adding that factors which contributed to the nation’s economic growth included the government’s focus on the digital economy, innovation and creativity, emphasis on getting a more substantial contribution from the small and medium enterprises business segment, as well as the continuous inflow of foreign investments and execution of major infrastructure projects.

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Reading Time: 1 minute

Kuala Lumour’s busy district of Bukit Bintang

Malaysia is expected to maintain a robust economic momentum but will grow slower than last year, according to estimations by Moody’s Investors Service issued on February 20.

Reading Time: 1 minute

Kuala Lumour’s busy district of Bukit Bintang

Malaysia is expected to maintain a robust economic momentum but will grow slower than last year, according to estimations by Moody’s Investors Service issued on February 20.

The rating agency said it believed that Malaysia’s robust gross domestic product (GDP) growth seen in 2017 would likely continue into 2018 and over the medium term, supporting the sovereign’s credit profile. However, it would likely be slower at 5.2 per cent compared to the 5.9 per cent recorded by the central bank in 2017.

“Malaysia’s GDP growth should average 5.2 per cent in 2018, underpinned by a pipeline of large infrastructure projects that will stimulate public and private investment,” a Moody’s report said.

However, although household debt level in Malaysia has moderated, it is still relatively high given Malaysia’s income levels. This trend may continue to pose challenges to the country’s macro-stability, Moody’s said.

Malaysia’s outstanding household debt as at the end of 2017 was 84.3 per cent of GDP, down from 88.4 per cent as of end 2016.

Meanwhile, Malaysia‘s Department of Statistics said the country was capable of achieving a GDP of two trillion ringgit ($512 billion) by 2022 as compared to 1.35 trillion ringgit ($346 billion) in 2017 and 1.23 trillion ringgit ($315 billion) in 2016 in case the annual growth rate is maintained at between five and six per cent.

According to chief statistician Mohd Uzir Mahidin, the country was on the right track to achieving this target based on its strong economic position.

“With the ongoing efforts, we hope to achieve two trillion ringgit GDP by 2022,” Mahidin said, adding that factors which contributed to the nation’s economic growth included the government’s focus on the digital economy, innovation and creativity, emphasis on getting a more substantial contribution from the small and medium enterprises business segment, as well as the continuous inflow of foreign investments and execution of major infrastructure projects.

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