RAM Ratings said there is an upward trend in the Malaysian economy in 2024 and will maintain the projected Gross Domestic Product (GDP) at 4.5% to 5.5%.
In a statement, Malaysia's GDP growth underperformed in 2023 at 3.7% compared to the market consensus of 4.0% due to weaker export demand and lackluster domestic consumption momentum.
Despite a relatively bright start in the first quarter of 2023, continued softness in global trade throughout the year led to a sharp contraction in overall exports and significantly dragged down overall GDP growth.
He further said that high price pressure and large lapses in policy support burdened private consumption and resulted in a lower report of 4.7%.
Although the performance in the fourth quarter of 2023 was less encouraging, they believe there will be an improvement in the economy in 2024 and predict a GDP projection target of 4.5% to 5.5%.
The chance of a 'soft landing' appears to be higher in the global economy with the International Monetary Fund (IMF) raising its 2024 global growth forecast by 0.2 percentage points to 3.1% last month.
Furthermore, the latest inflation data in January 2024 points more towards easing price pressures, robust employment data and financial conditions supporting higher domestic demand.
Escalating geopolitical conflicts could threaten global commodity markets and normal supply chains.
As for the local factor, control continues towards the implementation of the re-targeting of the RON95 subsidy in the second half of 2024.
