Financial firm, RAM Ratings reports that Malaysia's gross domestic product (GDP) growth forecast in 2024 will be 4.5% to 5.5% to witness the strong growth momentum of the first quarter and continue in the second half of the year.
Expected in 2025, RAM has forecast GDP growth at 4.0% to 5.0% as Malaysia transitions to a more stable growth phase after experiencing global economic turmoil over the past few years.
Malaysia's economy posted stronger than expected growth of 5.1% in the first half of 2024 with GDP increasing from 4.2% in the first quarter and 5.9% in the second quarter.
However, the potential implementation of RON95 subsidy targeting will pose a major challenge and dampen private consumption growth due to unwanted price pressure.
Its continued impact and financial assistance to low-income households will cause disruptions in local economic flows.
In addition, the rising geopolitical conflict, especially the growing US-China tension and the possibility of global trade disruptions are the main concerns for Malaysia's economic prospects.
Malaysia's better-than-expected growth in the first half of 2024, especially in the second quarter, was driven by strong private consumption and a recovery in exports benefiting from the global technology cycle.
