Malaysia's gross domestic product (GDP) is forecast to grow by more than 5% in 2024, according to projections from two investment banks.
Hong Leong Investment Bank Bhd (HLIB) maintained its GDP forecast at 5%, citing a healthy labor market and supportive domestic policies, expected to boost consumer spending.
The labor market is expected to remain stable due to improvements in the tourism sector, exports and employment-related initiatives.
Meanwhile, the unemployment rate remains stable at 3.3% in July 2024.
CIMB Research has a slightly higher GDP forecast of 5.2%, driven by a recovery in external demand from the global technology upcycle.
CIMB's forecast is based on the strength of domestic spending, supported by robust investment.
Growth in distribution trade and an increase in tourist arrivals, coupled with strong motor vehicle sales in the first half of 2024, are expected to strengthen the services sector.
Malaysia's economy remains positive, supported by both external and domestic factors.
